If a firm doubles the amount of labor it uses and triples the amount of capital it uses but its level of output less-than-triples as a result, what can be said about the firm's returns to scale?
A. This firm has increasing returns to scale.
B. This firm has decreasing returns to scale.
C. This firm has constant returns to scale.
D. Nothing can be determined about this firm's returns to scale based on the information given.
D. Nothing can be determined about this firm's returns to scale based on the information given.
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When actual real GDP is below natural real GDP, we say that
A) the output gap is positive. B) the output gap is negative. C) the output gap has been eliminated. D) the output gap cannot be calculated.
If an excise tax is imposed on a good or service,
a. the supply curve shifts upward b. the supply curve shifts downward c. the price paid by consumers decreases d. the net price received by sellers increases e. the quantity produced and sold increases
The portion of a resource's earnings greater than the amount required to keep the resource in its present use is called:
a. the price of the resource. b. the opportunity cost of the resource. c. economic rent. d. income.
A savings deposit is a type of
A) time deposit that is payable on demand. B) time deposit that earns interest and allows the depositor to write checks payable to other persons. C) time deposit that does not earn interest but does offer limited check-writing services. D) interest-earning account at a bank or thrift institution in which funds can be withdrawn at any time without a penalty payment. E) checkable deposit that also pays interest.