Sources of external economies of scale include
A. larger firm size that results in volume discounts.
B. larger industry size that `results in lower production costs.
C. larger plant size that allows the plant to take advantage of technology.
D. All of the above are correct.
Answer: B
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Are there any measurement problems that occur with the GDP calculation? Explain.
What will be an ideal response?
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a corporation. What is one advantage to Jeremy of setting up his business as a corporation?
A) By setting up the business as a corporation, Jeremy would not face double taxation. B) By setting up the business as a corporation, Jeremy would have the ability to share risk with shareholders. C) By setting up the business as a corporation, Jeremy would have both ownership and control over the business. D) All of the above would be advantages of setting up his business as a corporation.
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. After firms can respond to the payroll tax, there will be an
A. equilibrium in the labor market. B. excess demand for labor of 100 units. C. excess supply of labor or 100 units. D. excess supply of labor of 150 units.
A government is running a budget surplus if:
A. government revenue is less than government spending. B. imports exceed exports. C. government revenue exceeds government spending. D. exports exceed imports.