When there are external economies of scale, an increase in the size of the market will
A) increase the number of firms and lower the price per unit.
B) increase the number of firms and raise the price per unit.
C) decrease the number of firms and raise the price per unit.
D) decrease the number of firms and lower the price per unit.
E) not affect the number of firms, but will lower the price per unit.
A
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The closer we are to the production possibilities frontier and the farther away we are from the origin,
A. the more unemployment there is. B. the less unemployment there is. C. the only way to produce more guns will be to give up some butter production. D. the only way to produce more butter will be to give up some gun production.
If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would increase
Indicate whether the statement is true or false
If the level of interest rates increases, then the current value and price of a bond paying a fixed interest payment will
A) remain unchanged since its underlying value, the interest payment is fixed. B) fall since new bonds offer higher rates. C) rise since new bonds offer higher rates. D) first rise then fall as bond investors calculate the effects of the change in rates.
Which of the following reasons is not a likely explanation as to why college completion rates are greater, on average, for whites than for blacks?
A. Tuition costs are lower for whites than blacks. B. Whites have access to more financial capital to pay for college than blacks. C. Postcollege wages are higher for whites than for blacks. D. Whites are more able to postpone earnings at age 18 than are blacks. E. Whites have greater access to higher quality public education at the elementary and secondary level.