Economies of scale are also referred to as increasing returns to scale.
Answer the following statement true (T) or false (F)
True
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Financial innovations can have the effect of
A) only decreasing the demand for money. B) only increasing the demand for money. C) either increasing or decreasing the demand for money depending on what the innovation is. D) increasing the Fed's monetary policy.
In IS-LM analysis, the nominal interest rate is
A) purely a monetary phenomenon. B) purely a real phenomenon. C) both a monetary and a real phenomenon. D) neither a real nor a monetary phenomenon, but determined by government policy.
If a nation is going to benefit fully from technological advances and entrepreneurial ideas, it must
a. be relatively easy for persons from diverse backgrounds to try out their ideas at a relatively low cost. b. have a mechanism that will bring unsound projects to a halt. c. have a central investment authority that will review projects and decide which should be undertaken. d. be both a and b.
When a tax is levied on buyers of a good,
a. government collects too little revenue to justify the tax if the equilibrium quantity of the good decreases as a result of the tax. b. there is an increase in the quantity of the good supplied. c. a wedge is placed between the price buyers pay and the price sellers effectively receive. d. the effective price to buyers decreases because the demand curve shifts leftward.