Economic conditions favor firms getting larger (producing larger quantity) when the firms are producing under conditions of:
a. Decreasing returns to scale
b. Increasing returns to scale
c. Constant returns to scale
b. Increasing returns to scale
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Economists use the mechanism of supply and demand to study:
a. inflation b. unemployment c. environmental protection d. both a and b e. all of these
The conservative theory of poverty blames _____ for welfare dependency.
A. the poor B. the government C. both the poor and the government D. neither the poor nor the government
The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) the Taylor rule. B) a liquidity trap. C) a zero-sum game. D) an interest rate panic.
The normal market demand curve for money is
A. A downward-sloping demand curve, where more money is held at lower interest rates. B. An upward-sloping demand curve, where more money is held when interest rates are higher. C. A vertical demand curve, where the same amount of money is held regardless of the interest rate. D. A horizontal curve at very high interest rates, where the quantity demanded changes but the interest rate is constant.