Which of the following is an example of outsourcing?
a. When production of economics textbooks, management textbooks, and finance textbooks can be done by a single publishing company at lower average cost than by separate publishing companies that specialize in just one topic.
b. When a firm produces 600,000 units per month to realize the minimum average cost of producing a unit of output.
c. When a firm finds that it is more profitable to contract for certain inputs or functions supplied by others than to produce those inputs or functions itself.
d. When a steel company integrates backward to mine iron ore and even the coal used to smelt iron ore.
c
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Command economies are able to achieve greater allocative efficiency than market economies
a. True b. False Indicate whether the statement is true or false
For a monopoly, the socially efficient level of output occurs where
a. marginal revenue equals marginal cost. b. average revenue equals marginal cost. c. marginal revenue equals average total cost. d. average revenue equals average total cost.
A technological improvement can cause the production possibilities curve to shift outward because
A) it increases costs and contributes to lower production rates. B) maximum feasible outputs of both goods increase. C) production will fall, but jobs will be saved. D) it causes increases in unemployment.
GDP handles household production by
A) estimating a dollar value of the goods purchased to do housework. B) ignoring it. C) including it in real GDP but not in nominal GDP because there are no prices paid for the work. D) estimating a dollar value of the services provided. E) including it in exactly the same way that all other production is included.