Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.
A. equal to what; will not
B. more than; will not
C. more than; will
D. less than; will
Answer: C
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Which of the following statements is true?
a. When long-run average total costs are increasing, the firm enjoys economies of scale. b. Most industries exhibit long-run average costs that are shaped like an upside-down U. c. Constant returns to scale occur when the short-run average-total-cost curve is horizontal. d. When long-run average total costs are increasing, the firm has diseconomies of scale. e. Constant returns to scale are never present in the real world.
A transaction cost associated with spot trading is:
a. travel to and from the market. b. shipping costs. c. brokerage commissions. d. the spread, which is earned mostly by large banks.
Central planning is the principal method for making economic decisions in:
A.) The United States. B.) Singapore. C.) New Zealand. D.) North Korea.
The basic factors of production include
A. Land, labor, money, and inputs. B. Land, labor, capital, and entrepreneurship. C. Labor and money. D. Land, labor, money, and capital.