Which of the following cases exhibit increasing returns to scale?
a. Output increases by 5 percent when inputs are increased by 6 percent.
b. Output increases by 6 percent when inputs are increased by 5 percent.
c. Output increases by 7 percent when inputs are increased by 7 percent.
d. Output declines by 2 percent when inputs are increased by 1 percent.
B
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If the marginal tax rate is 20%, by how much must income have increased if your tax bill increases by $300?
A. $1,500 B. $300 C. $1,000 D. Cannot be determined
A commercial bank like Comerica creates money by
A) making loans. B) selling corporate bonds. C) earning profits. D) printing paper money.
The optimum tariff is most likely to apply to
A) a small tariff imposed by a small country. B) a small tariff imposed by a large country. C) a large tariff imposed by a small country. D) a large tariff imposed by a large country. E) an ad valorem tariff on a small country.
Countries with surpluses in their balance of payments frequently do not want to see their currencies ________ because it makes their goods ________ expensive abroad
A) appreciate; less B) appreciate; more C) depreciate; less D) depreciate; more