When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
A. Economies of scale
B. Constant returns to scale
C. Diseconomies of scale
D. A violation of the law of diminishing returns
A. Economies of scale
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A consumer's budget refers to the:
A) wealth she has acquired over time. B) prices of the goods she buys. C) amount of money she can spend on various goods and services. D) difference between the consumer's income and expenditure.
An easy way to determine if a currency is undervalued at a point in time is to use the model of purchasing power parity
Indicate whether the statement is true or false
We wouldn't have to make choices if wants were not insatiable
Indicate whether the statement is true or false
New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called “bandit barriers.” The police were surprised the bank did not take their advice. According to a deputy commissioner of police, “Commerce does very little of what we recommend. They’ve told our detectives they have no interest in ever putting in the barriers.” It would seem that Commerce Bank would have a strong incentive to install “bandit barriers” to deter robberies. Why wouldn’t they do it?
a. The banks probably resent any interference from the police department. b. The banks are concerned that “bandit barriers” would send the wrong message to customers—that the bank is unsafe. c. The banks must have weighed the cost of installing bandit barriers against the bene ts and decided that they have “no interest in ever putting in the barriers.” d. The banks would rather delay the installation of any theft deterring equipment in anticipation of new lower-cost innovations in the security devices market.