If a firm is experiencing diseconomies of scale, then
A) proportional increases in all inputs result in proportional increases in output.
B) the long-run average cost curve is rising as output expands.
C) the long-run average cost curve is decreasing as output expands.
D) the firm should expand the size of its operation.
Answer: B
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In the foreign exchange market, which of the following shifts the demand curve for dollars rightward?
A) The current exchange rate rises. B) The expected future exchange rate rises. C) The current exchange rate falls. D) The expected future exchange rate falls. E) None of the above answers is correct.
The use of the federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is
A) done only when there is a budget surplus. B) called government GDP policy. C) called fiscal policy. D) done only when there is a budget deficit. E) called monetary policy.
On which of the following government spending projects would the crowding out effect most likely be the greatest?
A) government spending on farm subsidies B) government spending on improvements in infrastructure C) government spending on research and development D) government spending on education
Real estate suitable for condominium development is also suitable for single-family home development. Therefore, a rise in the price of condominiums relative to single-family homes tends to
A) increase the opportunity cost of building new single-family homes. B) reduce the demand for condominiums. C) increase the demand for condominiums. D) do none of the above.