Suppose that a firm's long-run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. specialization.
c
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The argument that developing countries should nurture their infant domestic industries by protecting them from foreign competition is known as
A) the infant industry argument. B) the escape clause hypothesis. C) preservation of the home market. D) institutional fair trade policy.
An indifference map states:
a. indifference curves farther from the origin yield higher levels of total utility. b. that the consumer's income varies with the level of the indifference curve. c. indifference curves closer to the origin yield higher levels of total utility. d. that the points on either parts of indifference curves are preferred to the midpoint.
If the Fed increases the money supply, then _____
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. Suppose the consumption function for C1 is [C1 = 15 + 0.4Y]. The consumption function that best fits C3 is
A. C3 = 30 + 0.25Y. B. C3 = 20 + 0.8Y. C. C3 = 20 + 0.4Y. D. C3 = 15 + 0.75Y.