If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect
b. long-run average costs must be decreasing
c. the firm is experiencing diseconomies of scale
d. the firm should increase production
e. the firm is experiencing constant returns to scale
C
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Using the data in the above table, the unemployment rate is
A) 4.0 percent. B) 4.16 percent. C) 5.55 percent. D) 28.0 percent.
Ashley is an attorney and also an excellent typist. She can type 120 words per minute, but she charges attorney fees at $100 per hour. Benjamin would like some typing work but can only type 60 words per minute. According to the law of comparative advantage, Ashley should hire Benjamin to do her typing if and only if his wage rate is less than
a. $10 per hour. b. $50 per hour. c. $60 per hour. d. $100 per hour.
In order for good X to be a likely candidate for offshoring, it must be produced with ______________ labor intensity and be a relatively ________________ good
A) low; light B) low; heavy C) high; heavy D) high; light
Using the income approach, an estimate of the value of capital worn out producing GDP is:
A. indirect business taxes. B. capital consumption allowance or depreciation. C. gross private domestic investment. D. capital erosion estimate.