Economies of scale refer to:
A. the fact that large producers may be able to use more efficient technologies than smaller producers.
B. public investments in highways, schools, utilities, and such.
C. the reallocation of labor from less-productive to more-productive uses.
D. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
Answer: A
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Which of the following is an example of a pure private good?
A) a lighthouse B) burritos C) a high school football game D) redwood forests
If income increases or the price of a complement falls, the
A) demand curve for a normal good shifts leftward. B) demand curve for a normal good shifts rightward. C) supply curve of a normal good shifts leftward. D) supply curve of a normal good shifts rightward.
If the MPC is 0.6, then a 50-unit rise in taxes and a 50-unit rise in government spending will shift the IS curve
a. to the right by 50 units. b. to the right by 75 units. c. to the left by 125 units. d. to the left by 75 units.
Which of the following statements does not explain why US health care expenditures are higher than in other countries?
A) Government policies have shifted the health care production function downward over time. B) Consumer incomes have increased, which allows consumers to purchase more health care. C) The US health care system is relatively inefficient compared to other countries. D) Demand for health care in the US has increased, so health care production occurs at a higher point on the total product curve than in other countries.