As production of a good increases, opportunity costs rise because:
a. there will be more inefficiency. b. people always prefer having more goods.
c. of inflationary pressures. d. workers are not equally suited to all tasks.
d
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If economies of scale are relatively unimportant in an industry, the typical firm's long-run average total cost curve will reach a minimum at a level of output that is a ________ fraction of total industry sales. The industry will be ________
A) large; competitive B) small; an oligopoly C) large; an oligopoly D) small; competitive
According to New Keynesian theory, fluctuations in the target interest rate are not a good explanation of the business cycle because the model predicts that
A) consumption is constant. B) labor is countercyclical. C) average labor productivity is countercyclical. D) output is countercyclical.
The burden of a tax per unit of output will fall heavily on consumers when demand is relatively ________ and supply is relatively ________
A) inelastic; elastic B) inelastic; inelastic C) elastic; elastic D) elastic; inelastic
Which of the following describe(s) how corporations acquire funds for investment?
a. By lending out money for student loans or home mortgage loans. b. By issuing shares and retaining part of their profit. c. By paying dividends to stockholders. d. By paying taxes to the government.