Refer to the diagram. Constant returns to scale:
A. occur over the 0Q 1 range of output.
B. occur over the Q 1 Q 3 range of output.
C. begin at output Q 3 .
D. are in evidence at all output levels.
B. occur over the Q 1 Q 3 range of output.
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Which of the following is NOT a disadvantage of controls on capital outflows?
A) The controls may lead to excessive risk taking by the domestic banks. B) They are seldom effective during a crisis. C) Capital flight may increase after they are put in place. D) Controls often lead to an increase in government corruption.
Assume that the growth rate of real GDP in Astoria is 7.5%. Assume the growth rate of velocity is 0%
If Astoria's current annual inflation rate of 5.99%, the growth rate of the money supply will be A) -1.51%. B) 1.51%. C) 5.99%. D) 13.49%.
Total costs:
A. are fixed costs plus variable costs. B. include explicit and implicit costs. C. increases as the firm increases output. D. All of these are true.
A subsidy to firms intended to reduce pollution in an industry would
A. shift the LRAC curve upward. B. have the same impact on the firm as a tax. C. likely drive some existing firms from the industry. D. likely have the paradoxical effect of increasing pollution in the industry in the long run.