Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
A) diseconomies of scale
B) diminishing marginal product
C) constant returns to scale
D) economies of scale
Answer: D
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Why would the market economy produce too little education?
What will be an ideal response?
The money supply is $6 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.1. The monetary base is equal to
A) $2 million. B) $2.4 million. C) $2.6 million. D) $4 million.
A patent is a property right, which gives the owner
A) the right to sell and/or license the invention. B) the ability to make the knowledge of how to make the invention rival. C) a guaranteed profit. D) All of the above.
When a regulator is concerned about pleasing different groups in order to keep employed, this is known as the
A) share-the-gains, share-the-pains theory. B) regulatory hypothesis. C) capture hypothesis. D) creative theory.