If the production technology in a Robinson Crusoe economy has increasing returns to scale, there is no production/consumption plan that is efficient.
Answer the following statement true (T) or false (F)
False
Rationale:
You might also like to view...
Which of the following would lead to a rise in demand for recordable DVDs by students?
a. An increase in the number of DVD manufacturers. b. A decrease in the price of DVD recording devices. c. A decrease in the price of the DVD making machinery. d. A cut in the number of student workers hired by the university, lowering student incomes.
In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:
a. is the diagonal of the box. b. lies below the diagonal in the box. c. lies above the diagonal in the box. d. is the lower right corner of the box. e. is the upper left corner of the box.
Why does the wage gap between average wages for men and women exist?
a. There is systemic discrimination in labor markets. b. Men and women do not have the same skill sets. c. Men and women make different choices. d. There is no government policy regarding equal pay for equal work.
Copyrights and trademarks are examples of:
A. capital goods. B. human capital. C. property rights. D. public goods.