When financial institutions are able to reduce the costs of information for each service they offer by applying the same information source to each service, we say that the financial institution is realizing
A) economies of scope.
B) economies of scale.
C) increasing returns.
D) diminishing marginal returns.
A
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $35, The Waco Kid will produce
A) 1 hat. B) 2 hats. C) 3 hats. D) 4 hats.
A tariff will decrease the quantity supplied of a good
Indicate whether the statement is true or false
In explaining internally induced cycles, changes in investment and changes in national income are
a. independent of each other b. mutually reinforcing c. unrelated to the income multiplier d. rarely moving in the same direction e. dependent on changes in population
The government imposes a unit excise tax on bubble gum. What happens as a result?
A. There will be no change in either the market price or equilibrium quantity as long as the excise tax rate is 5 percent or less. B. At the original market price, there is a bubble gum shortage and so price rises. C. The equilibrium quantity of bubble gum increases. D. At the original market price, there will be a bubble gum surplus so price decreases.