If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect.
b. long-run average costs must be decreasing.
c. the firm is experiencing diseconomies of scale.
d. the firm should increase production.
e. the firm is experiencing constant returns to scale.
C
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All else held equal, economists would prefer a tariff over an import quota because
A. domestic producers can charge higher prices with a tariff than with an import quota. B. compared with an import quota, a tariff enables consumers to pay lower prices. C. a tariff enables the government to collect revenue, whereas an import quota does not. D. a tariff allows the market to adjust import quantities if domestic supply, domestic demand, or world price changes.
On a balance sheet, short-term debts such as accounts payable are listed as
A) current liabilities. B) stockholder's equity. C) goodwill. D) current assets.
A person’s portfolio of investments is the bundle of all the stocks, bonds, and other assets the person owns.
Answer the following statement true (T) or false (F)
Which of the following would be a laissez-faire approach for the government to follow?
a. take control of the nation's airline system b. regulate the allowable emissions of pollutants from electric plants c. remove all regulations on the channels a cable television system must carry d. become more stringent in the type of mergers that receive government approval e. protect dairy-farm owners with a guaranteed minimum price for milk