What is an increasing cost industry?
What will be an ideal response?
An increasing cost industry is an industry in which the average cost of production increases as total output of the industry increases.
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Ronald Coase was awarded the 1991 Nobel Prize in Economics primarily for addressing problems related to externalities. Which of the following describes Coase's work?
A) Coase argued that government intervention is necessary to achieve economic efficiency in markets that are affected by externalities. B) Coase proved that a competitive market achieved a greater degree of economic efficiency than a non-competitive market when externalities occur. C) Coase proved that economic efficiency cannot be achieved in a market that is affected by positive or negative externalities. D) Coase argued that under some circumstances private solutions to the problems of externalities will occur.
Which one of these economists studied the relationship between income and food consumption?
a. Schumpeter b. Friedman c. Jevons d. Malthus e. Engel
A monetary offset occurs when:
A. the central bank responds to expansionary fiscal policy with contractionary monetary policy. B. the central bank responds to expansionary fiscal policy with expansionary monetary policy. C. the central bank responds to contractionary monetary policy with contractionary fiscal policy. D. the central bank responds to expansionary monetary policy with contractionary fiscal policy.
If a business's total economic cost of producing 1,500 units of a product is $15,000 and this output sold to consumers for $16,500, then the firm would earn an economic profit of:
a. $16,500 b. $1,500 c. $15,000 d. $1,000