In the IS-LM model, the expenditure multiplier is [1/(1-b)] when the
A) LM curve is horizontal.
B) LM curve is upward-sloping.
C) LM curve is vertical.
D) IS curve is vertical.
A
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An increase in supply of a product results when
A) the companies that produce the product have higher materials costs. B) the government reduces subsidies on the product. C) taxes on the product are increased. D) technological innovations are introduced in the manufacturing process.
Economies of scale yield
a. declining average cost as output increases b. declining marginal cost as output increases c. declining total cost as output increases d. diminishing average returns as output increases e. increasing marginal revenue as output increases
The performance of diversified companies
A) is always greater than the performance of more narrowly focused firms. B) can be seen in greater economic profits. C) usually is greater than the overall economy. D) often simply mirrors the general economy.
A minimum wage is an example of a
A) price floor. B) price ceiling. C) quantity quota. D) free market equilibrium.