Under which conditions might diseconomies of scale result?
A. hampered coordination brought about by bureaucracy
B. decreasing costs of inputs
C. increasing output prices
D. usage of a large amount of indivisible inputs by the firm
Answer: A
You might also like to view...
One drawback in using fiscal policy as a stabilization tool is that fiscal policy:
A. is not useful for dealing with prolonged episodes of recession. B. effects are frequently offset by automatic stabilizers. C. affects potential output as well as aggregate expenditure. D. is too flexible to use to close output gaps.
Which of the following is true of resources?
a. Capital resources include manual labor. b. Natural resources are available in nature and are available at a zero price. c. Labor includes the skills and training people acquire to use in production. d. Technological know-how is an example of a natural resource. e. Human capital is the technical term for a robot.
The use of automated teller machines (ATMs) has caused some bank tellers to lose their jobs. This is an example of
a. cyclical unemployment. b. seasonal unemployment. c. frictional unemployment. d. structural unemployment.
Under the rational expectations hypothesis, which of the following is the most likely short-run effect of a move to a more expansionary monetary policy?
a. higher prices and no change in real output b. higher prices and expansion in real output c. no change in prices but an expansion in real output d. no change in either prices or real output