If average costs of production decline with increases in output for a particular firm:
a. many small firms will be more efficient than a single large firm.
b. one large producer will be more efficient than many small producers.
c. product diversification is necessary to spread the overhead.
d. diseconomies of scale become significant as output increases.
e. the variable cost of production must exceed the fixed costs.
b
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The three accounts used to measure the balance of trade are the ________ account, the ________ account and the ________ account.
A. financial, reserve, current B. current, capital, reserve C. current, reserve, financial D. current, financial, capital
Suppose the United States discovers a way to produce clean nuclear fuel. The effect of this discovery would be to
A) lead the United States to produce less nuclear fuel. B) force the United States to produce at a point inside its PPF. C) shift the U.S. PPF outward. D) shift the U.S. PPF inward.
The monetarists would expect a tax cut to have a strong effect on output only if the spending increase was
a. financed by a sale of bonds. b. financed by a cut in government spending. c. financed by an increase in the money stock. d. accompanied by a reduction in the deficit.
A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?
A. Safety nets B. Economic development C. Redistribution D. None of these is true.