You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has
a. decreasing returns to scale.
b. zero returns to scale.
c. constant returns to scale.
d. increasing returns to scale.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Why is it useful to make a distinction between debt and equity instruments?
What will be an ideal response?
The organization that settles trade disputes between countries is the
A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) United Nations.
The force that leads to zero economic profits for monopolistically competitive firms in the long run is: a. excess capacity
b. price wars among firms. c. new entry. d. excessive advertising.