Suppose a company that produces mouthwash branches out into producing toothpaste. If this expansion reduces the average cost per unit, the company must
a. benefit from vertical integration
b. benefit from horizontal integration
c. experience economies of scale
d. experience economies of scope
e. have no transaction costs
D
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The government could increase Social Security tax revenues by raising the payroll tax cap beyond its current $110,000
Indicate whether the statement is true or false
Norberto is opening a bicycle shop, and his monthly expenditures to get the shop up and running exceed his monthly income. Norberto is best described as a
a. saver or as a supplier of funds. b. saver or as a demander of funds. c. borrower or as a supplier of funds. d. borrower or as a demander of funds.
If the price of Good X is $2, the price of Good Y is $10 and the consumer's budget is $100, which of the following combinations of Good X and Good Y would be on the budget line?
A. 50 units of Good X and 10 units of Good Y B. 10 units of Good X and 6 units of Good Y C. 25 units of Good X and 5 units of Good Y D. 30 units of Good X and 6 units of Good Y
In an attempt to reduce the poverty rate, there has recently been a movement away from income maintenance programs to
A. encouraging people to get jobs. B. Supplemental Security Income programs. C. reducing the age a person can retire at. D. incorporating the Lorenz policy in decisions.