When isoquants get progressively further apart there is
a. increasing returns to scale
b. decreasing returns to scale
c. constant returns to scale
b
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The efficient markets hypothesis suggests that investors
A) should purchase no-load mutual funds which have low management fees. B) can use the advice of technical analysts to outperform the market. C) let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy. D) act on all "hot tips" they hear.
The colonies as a whole had a significant commodity trade deficit with England. In order to finance this deficit the colonies relied on all of the following sources of income except
a. a commodity trade surplus with Southern Europe. b. the sale of colonial shipping services. c. mining of gold and silver that were used to make Colonial coins. d. British government spending in the colonies.
Which of the following is an example of a positive economic statement?
a. The economy's output increased by 3 percent last year. b. A central bank should not print more money because inflation will result. c. Congress should stabilize the social security system by raising taxes now. d. The economy should grow at 5 percent each year. e. The government farm products surplus should be distributed to the needy.
The elasticity of a demand curve at any point can be ascertained by its steepness
a. True b. False Indicate whether the statement is true or false