If a firm is experiencing _____________________, then as the quantity of output rises, the average cost of production rises.
a. decreasing returns to scale
b. consent returns to scale
c. economies of scale
d. increasing returns to scale
a. decreasing returns to scale
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As demand and supply become more elastic, taxes reduce market output more and raise less tax revenue. ?
Answer the following statement true (T) or false (F)
When the efficient quantity of output is produced
A) the marginal social benefit of the last unit produced is equal to the marginal social cost of the last unit produced. B) the sum of consumer surplus and producer surplus is maximized. C) resources are used in the activities in which they are most highly valued. D) All of the above answers are correct.
The government redistributes income to the poor, primarily through
a. progressive taxes. b. transfer payments. c. government purchases. d. both a and b.
Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its _____________ or cut ___________________. I believe the government spending multiplier is ____________ than the tax multiplier, so I favor _____________________
A) spending; taxes; larger; cutting taxes B) taxes; spending; larger; raising; spending C) spending; taxes; larger; raising; spending D) b or c E) a or c