An increase in long-run average costs resulting from increases in output is
A. attributed to the law of diminishing marginal product.
B. attributed to economies of scale.
C. attributed to constant returns to scale.
D. attributed to diseconomies to scale.
Answer: D
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A free rider is a person who pays for a good but does not receive the benefit of it
a. True b. False Indicate whether the statement is true or false
An over-the-counter (OTC) market is:
A. made up of dealers who buy and sell for their customers and for their own accounts. B. made up of dealers who only sell government bonds. C. an example of a centralized market. D. made up of dealer who buy and sell only for their own accounts.
Retained earnings are
A) the funds held back to pay out dividends. B) the funds used to pay corporate taxes. C) profits not given out to stockholders. D) the reason there is double taxation.
If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher quantity and price. B) a lower quantity and a higher price. C) the same quantity and a lower price. D) a higher quantity and the same price.