Economies of scale exist when:
a. long-run average costs increase as output increases.
b. long-run average costs are constant.
c. short-run average costs increase.
d. short-run average costs decline.
e. long-run average costs decline as output increases.
e. long-run average costs decline as output increases.
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Refer to the table above. What is the total cost incurred per month if Ryan rents Apartment 3?
A) $2,000 B) $2,050 C) $2,150 D) $2,270
Every social system confronts scarcity and therefore must
A. produce only free goods. B. try to produce outside its production possibilities frontiers. C. economize. D. allocate goods by government edict.
In an economy with lump-sum taxes and no international trade, if the marginal propensity to consume is 0.8, which of the following is true?
a) when consumption increases by $5, investment increases by a maximum of $1 b) when consumption increases by $5, savings increase by a maximum of $1 c) when investment increases by $1, income increases by a maximum of $5 d) when investment increases by $1, consumption increases by a maximum of $5 e )when income increases by $1, investment increases by a maximum of $5
An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where the
A. MPC is small. B. MPC is large. C. aggregate supply curve is flat. D. aggregate supply curve is steep.