A decrease in the long-run average costs resulting from increasing output is referred to as
A) diseconomies of scale.
B) constant return to scale.
C) a scale invariant process.
D) economies of scale.
Answer: D
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Discuss the relationship between poverty, growth and the environment
What will be an ideal response?
Knowing that the presence of externalities reduces surplus, it implies that:
A. there are mutually beneficial trades waiting to be exploited so private parties have an incentive to solve the externality problem themselves. B. government needs to find them and correct the market. C. there are mutually beneficial trades waiting to be exploited, so government has an incentive to force those parties to solve the problem themselves. D. None of these statements is true.
Which of the following is not an example of a crime contemplated by the rational criminal model?
A. Car theft B. Murder for hire C. Insurance fraud D. School shooting
Related to the Economics in Practice on p.221 [533]: According to a recent study by Simon Gilchrist, Fabio Natalucci, and Egon Zakrajsek, a one percentage point increase in the interest rate appropriate for a firm'?s borrowing will lead to a
A) drop in investment spending of more than one percentage point. B) rise in investment spending of more than one percentage point. C) drop in investment spending of less than one percentage point. D) rise in investment spending of less than one percentage point.