If a firm experiences economies of scope,
a. its average cost falls as it increases output
b. its average cost rises as it increases output
c. average production costs fall when it produces more than one kind of product
d. it should integrate vertically
e. average production costs rise as it produces more kinds of products
C
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Most of the goods produced in an economy are ________
A) private goods B) public goods C) club goods D) inferior goods
Which of the following is an example of a nonexcludable product?
A) Internet service for your home computer B) public transportation C) college education D) a public library
In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price
a. True b. False Indicate whether the statement is true or false
Classical economists and Keynesian economists respect each other but hold very different views about how to read the quantity theory of money. According to the classical view,
a. velocity is constant (Keynesians agree), which means changes in price will cause changes in price or quantity (Keynesians disagree) b. quantity is constant (Keynesians agree), which means changes in the money supply could cause either changes in velocity or changes in prices (Keynesians disagree) c. velocity and price are constant (Keynesians disagree) so that changes in the money supply cause changes in quantity (Keynesians disagree) d. velocity and quantity are constant (Keynesians disagree) so that changes in the money supply only cause changes in prices (Keynesian disagree) e. velocity is constant while quantity is variable (Keynesians disagree) so that changes in the money supply change both price and quantity (Keynesians disagree)