If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, then the expansion would provide ________ to the airlines
A) economies of scale
B) diseconomies of scale
C) higher average costs but lower total costs
D) higher marginal costs but lower total costs
Answer: A
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Suppose the own price elasticity of demand for good X is ?0.5, and the price of good X increases by 10 percent. What would you expect to happen to the total expenditures on good X?
A. Increase B. Remain unchanged C. Decrease D. Neither increase, decrease, nor remain unchanged
If today $1 exchanges for ¥135, and tomorrow $1 exchanges for ¥150,we say the euro has:
a. appreciated. b. depreciated. c. stagnated. d. become inverted.
All of the following are macro failures that justify government intervention except for:
A.) High unemployment. B.) A rising price level. C.) A decline in the production capacity. D.) Inequitable distribution of output.
In the early 1900s, which of the following was not true?
A. Government intervention was commonly used to stimulate the economy. B. Falling price levels appeared to limit an increase in unemployment. C. Periods of high unemployment tended to be brief. D. Say's Law seemed to work.