The short-run average total cost curve eventually begins to increase at an increasing rate because of
A) economies of scale.
B) the constraint that the firm cannot change production technologies.
C) diminishing returns phenomena.
D) increasing returns to scale.
C) diminishing returns phenomena.
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A decrease in the price of an input will
A) increase demand for the product. B) decrease demand for the product. C) increase supply of the product. D) decrease supply of the product.
In a housing market with a rent ceiling below the equilibrium rent, apartment seekers spend more time searching for an apartment than they would in a housing market without a rent ceiling. Why does this difference exist?
A) In the market with the rent ceiling, renters are searching for the best buy in apartments. B) In the market with the rent ceiling, there is a wide variety in the quality of apartments for rent. C) In the market with the rent ceiling, the quantity of housing demanded is greater than quantity supplied at the ceiling price. D) The premise of the question is incorrect because people spend less time searching with a rent ceiling since they no longer need to look for a low-priced apartment. E) The premise of the question is incorrect because there is no difference in the search time between a market with a rent ceiling and one without a ceiling.
The largest asset of the Fed from those on this list is
A) U.S. Treasury securities. B) mortgage-backed securities. C) loans to depository institutions. D) currency outstanding.
The mechanism by which buyers and sellers negotiate an exchange is called a/an
A. meeting. B. market. C. equilibrium. D. model.