Many universities have either a top football program OR a top basketball program. Very few have both. These results suggest the presence of
A) economies of scope.
B) diseconomies of scope.
C) returns to scale.
D) the law of diminishing marginal returns.
B
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Economists using marginal utility theory assume that consumers' objectives are to
A) maximize their total utility. B) maximize their marginal utility. C) maximize their income. D) none of the above.
Inelastic demand implies
A) that a one percent increase in price results in a smaller than one percent decrease in quantity demanded. B) that a one percent increase in price results in a larger than one percent decrease in quantity demanded. C) that a one percent cut in price results in a larger than one percent increase in quantity demanded. D) that a one percent decrease or increase in price induces no change in total revenue.
If a government budget deficit leads to a higher level of imports, with exports remaining fixed, the result will be a
a. smaller trade deficit. b. larger trade deficit. c. smaller surplus. d. larger surplus.
Which statement about the total variable cost curve is true?
a. It begins at the origin and increases before decreasing again. b. The total variable cost curve is the same at all levels of output. c. The total variable cost curve is increasing but at a decreasing rate. d. It begins at the origin and is always increasing. e. There is no such thing as a total variable cost curve.