In the short run average costs eventually increase because of ________, and in the long run average costs eventually increase because of ________.
A. diseconomies of scale; diminishing returns
B. constant returns to scale; decreasing returns to scale
C. increasing returns to scale; diseconomies of scale
D. diminishing returns; diseconomies of scale
Answer: D
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Today, the dollar is worth 1.15 euros. Due to changes in economic conditions, people expect that the dollar will be worth 1.20 euros in the next month. This belief
A) increases the demand for dollars. B) decreases the demand for dollars. C) increases the demand for euros. D) increases the value of exports to Europe.
Based on the table of Real GDP, which comparison of the nominal GDP and the real GDP is accurate?
a. The nominal GDP is usually equal to the real GDP.
b. The nominal GDP is usually less than the real GDP.
c. The nominal GDP is usually more than the real GDP.
d. The relationship between nominal and real GDP depends on the base year.
Singapore has a system of traffic regulation called Electronic Road Pricing, in which traffic congestion is reduced by charging motorists who drive into the city center during certain hours of the day. Charging for use of a road is:
A. a quantity restriction, as the system involves charging motorists only if they drive into the city center during "certain hours" of the day. B. a price ceiling that reduces the excess demand for road usage. C. shifting from a third-party-payer-market to one in which individual consumers have to pay for their consumption of road usage, thus seeking to reduce excess demand. D. a price floor that eases the shortage caused by the natural limit to how much roads can be built in a certain geographic area.
Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. The mustard recall would have caused the equilibrium price of mayonnaise to ________ and the equilibrium quantity of mayonnaise to ________.
A. increase; increase B. decrease; increase C. increase; decrease D. decrease; decrease