Economies of scale are also referred to as increasing returns to scale.
Answer the following statement true (T) or false (F)
True
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The most basic cause of unemployment in the United States is that
A) the natural rate of unemployment is much higher than zero. B) we are most of the time producing a real GDP below the natural real GDP. C) we are suffering from low productivity growth. D) we are converting from a predominantly industrial to a predominantly service-based economy. E) policymakers are constantly trying to hold down inflation.
What does a production possibilities curve show?
What will be an ideal response?
Consider a market that is in equilibrium. If it experiences both an increase in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely rise, while the equilibrium price cannot be predicted. C. price will definitely rise, while the equilibrium quantity cannot be predicted. D. price and quantity will both fall.
Productivity is measured as output per unit of productive input
a. True b. False Indicate whether the statement is true or false