As any firm with decreasing returns to scale increases its output:
A. its average cost of production must rise.
B. its average cost of production must fall.
C. its total cost of production must fall.
D. its marginal cost of production must rise.
A. its average cost of production must rise.
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The time it takes for policy makers to obtain data indicating what is happening in the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
A person starts her own business. She quits her $40,000 a year job, rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000
She uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively A) $45,000 and $11,000. B) $45,000 and $5000. C) $51,000 and $5000. D) $51,000 and $45,000.
Which of the following is NOT true with fixed exchange rates and perfect capital mobility?
A. Sterilization is impossible. B. Monetary policy is very powerful only in the short run. C. Monetary policy is not effective in either the long run or the short run. D. Fiscal policy is very powerful.
A supply curve is a:
A. graph depicting various price-quantity combinations of multiple goods. B. graph that visually displays the supply schedule. C. graph that shows the quantities of a particular good or service that producers will sell at one price. D. table that displays various price-quantity combinations of a good or service.