Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result in:
A. economies of scale.
B. Gigantic Company achieving the minimum efficient scale of production.
C. diseconomies of scale.
D. increasing marginal returns.
Answer: A
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Social Security tax is deducted from your paycheck. In the figure above this will be shown as
A) taxes flowing from households to governments. B) taxes flowing from firms to governments. C) taxes flowing from households to firms. D) wages flowing from firms to households. E) wages flowing from firms to governments.
Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?
Inflation targeting requires monetary policymakers to rely heavily on the Phillips curve.
Answer the following statement true (T) or false (F)
A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -0.1. The government must ________ the price of electricity by ________.
A. lower; 20% B. raise; 100.0% C. raise; 10.0% D. raise; 1.0%