Costs increase with output in an increasing-cost industry because:
A. input prices increase as the industry competes for scarce resources.
B. firms may be forced to use less productive inputs.
C. the firms become monopolies.
D. Both input prices increase as the industry competes for scarce resources and firms may be forced to use less productive inputs are correct.
Answer: D
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The production possibilities frontier is a boundary that separates
A) fair combinations of goods and services that can be consumed from unfair ones. B) the combinations of goods that can be produced from the combinations of services. C) attainable combinations of goods and services that can be produced from unattainable ones. D) affordable production points from unaffordable points. E) equitable combinations of goods and services that can be produced from inequitable ones.
Which of the following people would be included in the calculation of the civilian labor force?
a. Adriana, a 17-year-old high school graduate who is looking for her first job b. Khadija, a retiree who occasionally does volunteer work at the local library c. Simen, an accountant who is currently serving a prison sentence for embezzlement d. Lorn, a Marine Corps sergeant who works full time at 29 Palms, California
One of the main purposes of the Fed's reserve requirements is to
A. provide cash flow for business firms. B. provide sources for foreign exchange. C. provide sources for foreign investments. D. regulate the lending ability of member banks.
Which of the following is true of an expansionary gap?
What will be an ideal response?