The reduction in average cost resulting from an increase in the volume of a good or services produced is called:
A) information cost
B) transaction cost
C) diminishing returns
D) economies of scale
D
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Refer to Table 14-3. Which of the following statements is true?
A) The Nash equilibrium is a noncooperative, dominant strategy equilibrium. B) The Nash equilibrium is a cooperative equilibrium. C) There is no Nash equilibrium in this game because each party pursues its dominant strategy. D) The Nash equilibrium is a collusive equilibrium.
Along the aggregate supply curve
A) the horizontal part represents a situation where the economy is operating above full employment levels. B) inflation would be a primary concern along the horizontal part of the aggregate supply curve. C) idle resources, such as labor and capital, would be a feature of the vertical section of the aggregate supply curve. D) the horizontal section of the aggregate supply curve represents the limit of production. E) the middle, upward-sloping part of the aggregate supply curve would be associated with a growing economy that experienced increased prices from resources that are becoming relatively scarce.
If the government enacts contractionary fiscal policy, it:
A. must want to slow economic activity. B. could increase taxes. C. expects aggregate demand to decrease. D. All of these are true.
If the ________ effect is greater than the ________ effect, a decrease in interest rates will decrease saving and increase consumption spending by households.
A. income; substitution B. consumption; wealth C. wealth; consumption D. substitution; income