Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of
A) increasing marginal returns.
B) diminishing marginal returns.
C) economies of scale.
D) diseconomies of scale.
C
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An increase in human capital will tend to cause which of the following?
A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above
Which of the following items is included in the M1 money supply?
A) $10 bills in the Bank of America B) a $5,000 student loan granted to a U.S. citizen C) coins in a Pepsi vending machine, waiting to be used as change D) a $5,000 line of credit on a newly graduated student's credit card E) $1,500 in a student's saving account
Measuring the size of future government deficits is complicated by all of the following except uncertainty about
a. liabilities for future entitlements. b. future economic growth. c. future inflation. d. the future assets of the U.S. government.
A country's comparative advantage can be illustrated by the graph of the production possibilities frontier
a. True b. False Indicate whether the statement is true or false