America Online's cost of delivering Internet access to each additional user has fallen over time because:
A. Of constant returns to scale
B. Of minimum efficient scale
C. Of economies of scale
D. It is a natural monopoly
C. Of economies of scale
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Why might spending on basic literacy for girls have a social return that exceeds the private return?
What will be an ideal response?
Input-output analysis is rarely used because
A. it requires tremendously complex calculations. B. it requires large amounts of data. C. market economies can instead rely on the price mechanism to organize production. D. All of the responses are correct.
Modern mixed economies
A. generally alter the outcome of market processes in a manner that is believed to be in the social interest. B. attempt to redistribute income to make the distribution of income more equitable. C. rely on the government as well as the market to effect the distribution of goods and services. D. undertake all of the actions listed.
The federal funds rate is
A. the interest rate banks charge the federal government. B. the interest rate on short-term loans of reserves from one bank to another. C. the interest rate banks charge their most credit-worthy customers. D. the interest rate on federal government bonds.