As the firm in the diagram expands from plant size #1 to plant size #3, it experiences:
A. diminishing returns.
B. economies of scale.
C. diseconomies of scale.
D. constant costs.
B. economies of scale.
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The Fed wants to keep the dollar at 0.80 euros per dollar. If the demand for dollars increases,
A) the Fed sells dollars to increase the supply of dollars and maintain the exchange rate. B) the Fed conducts persistent intervention on one side of the market. C) the Fed buys dollars to increase the supply of dollars and maintain the exchange rate. D) the Fed buys dollars to decrease the supply of dollars and maintain the exchange rate. E) the Fed sells dollars to decrease the supply of dollars and maintain the exchange rate.
Joe Spengler, now age 54, lost his job as a shipbuilder during the recession of 1991 . His plant never reopened, and he has very specialized skills that are no longer in demand. Joe's unemployment is best classified as
a. cyclical b. structural c. discouraged d. frictional e. voluntary
A recent outbreak of hepatitis was linked to a national fast-food restaurant chain. This is an example of a case in which
a. brand name identity increases the effectiveness of markets. b. brand name identity can be detrimental to the profitability of a firm. c. advertising is ineffective in salvaging perceptions of product quality. d. advertising cannot be used to establish brand loyalty.
India's rapid growth can be explained by
A) reduced regulations and market-based reforms. B) investment in human capital from 1947 through 2017. C) the movement of workers from the agricultural sector to the manufacturing sector. D) an increase in labor force participation.