An increasing-cost industry is the result of:
A. higher resource prices that occur as the industry expands.
B. a change in the industry's minimum efficient scale.
C. X-inefficiency.
D. the law of diminishing returns.
Answer: A
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Which of the following is TRUE of the European Union's cap-and-trade program?
A) Firms are taxed based on the their pollution levels. B) Firms are forced to shut down when they exceed their pollution limits. C) Governments subsidize firms to develop devices to reduce pollution. D) Firms can trade pollution permits to meet their pollution limits.
Which of the following is the relationship among excess reserves, required reserves, and total reserves?
a. total reserves = required reserves - excess reserves b. excess reserves = total reserves/required reserves c. total reserves = excess reserves + required reserves d. total reserves = excess reserves - required reserves e. excess reserves = required reserves - total reserves
One of the effects of a change in disposable income could not be a(n)
a. movement up along the consumption function. b. movement down along the consumption function. c. change in the amount of consumption expenditures. d. upward shift of the consumption function.
Suppose a presidential candidate promises to increase the government budget surplus and claims that doing so will stop U.S. citizens from investing in foreign companies and increase the value of the dollar. Evaluate this candidate's promise