The doubling of a firm's feedlot capacity which results in a doubling of production is characteristic of
A) A shift in the iso-revenue line. B) Increasing returns to scale.
C) Constant returns to scale. D) A shift in the iso-cost line.
Answer: C
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Everything else held constant, when the government has higher budget deficits
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the supply curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate rises.
"Shifting resources from the production of other goods to the production of national security goods may not increase a nation's national security.". Explain
A price ceiling set below the market clearing price will tend to cause which of the following?
A) a surplus B) a shortage C) an increase in demand D) a reduction in supply
Refer to Figure 19-5. The Chinese government pegs the yuan to the dollar, at one of the specified exchange rates on the graph, such that it undervalues its currency. Using the figure above, this would generate
A) a surplus of yuan equal to 400 million. B) a surplus of yuan equal to 300 million. C) a surplus of yuan equal to 200 million. D) a shortage of yuan equal to 200 million. E) a shortage of yuan equal to 400 million.