Define returns to scale
Returns to scale summarize the response of a firm's output to equal percentage changes in all inputs. If all inputs are raised by equal percentages and output increases by a larger percentage, there are increasing returns to scale. Similarly, if all inputs are raised by equal percentages and output increases by a lesser percentage, there are decreasing returns to scale. If output changes by the same percentage as inputs, it implies constant returns to scale.
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All of the following are common to banking crises in different countries EXCEPT
A) financial liberalization or innovation. B) weak bank regulatory systems. C) a government safety net. D) a dual banking system.
An example of permanent insurance is ________ insurance, and an example of temporary insurance is ________ insurance
A) term; variable life B) whole life; variable life C) whole life; term D) term; whole life
When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
a. economies of scale. b. diseconomies of scale. c. constant returns to scale. d. diminishing returns. e. some fixed factors of production.
If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
a. 0. b. 1. c. 4. d. 5.