Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, coordination of work teams is becoming more difficult because of increased bureaucracy. 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: C
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A) business cycles. B) economic growth. C) GDP gaps. D) unemployment.
One method used by the Federal Reserve to prevent abuse of the discount facility is
A) higher bank taxes. B) higher reserve requirements. C) tighter bank surveillance. D) selling fewer government securities to the banks involved.
The regional Federal Reserve bank presidents are:
A. selected by the Federal Reserve Board of Directors. B. allowed to serve no more than two consecutive four-year terms. C. are responsible for regulatory oversight and implementation of monetary policy of regional banks. D. directly affiliated with other governmental agencies.
In the debate between the critics and defenders of advertising, what conclusion have policymakers come to regarding the effect of advertising on competition - advertising makes markets more competitive or less competitive?