If you double input, output less than doubles.
What will be an ideal response?
Ans: Decreasing returns to scale
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Which of the following illustrates a macroeconomic question?
A. What is the least costly way to produce automobiles and trucks in the United States? B. Should the salaries of financial executives be regulated by the government? C. Will the introduction of a new computer chip change the demand for computers? D. Are increasing wage demands by workers contributing to price inflation?
Agraria is a small agricultural country that does not trade with the rest of the world. Based on this information, we can conclude that Agraria is a(n) ________ economy
A) closed B) communist C) command D) open
A central theme of the new growth theory is that
A) firms don't really experience profit. B) humans can work harder than previously thought. C) the government is more efficient than private markets. D) the economy doesn't experience diminishing returns. E) firms don't experience diminishing returns.
The short-run supply curve of a perfectly competitive firm is the
a. upward-sloping portion of its average total cost curve b. upward-sloping portion of its average variable cost curve c. average fixed cost curve at all levels of output d. marginal cost curve, which lies above the average variable cost curve e. downward-sloping portion of its marginal cost curve