Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
A. diseconomies of scale
B. economies of scale
C. diminishing marginal product
D. constant returns to scale
Answer: B
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Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate
a. 11.4 percent b. 10.0 percent c. 9.5 percent d. 7.5 percent e. 10.8 percent
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
What will be an ideal response?
The demand curve for loanable funds is downward sloping because
A. people save more at higher interest rates. B. more investments are profitable at low interest rates than at high interest rates. C. future income is more valuable now at higher interest rates than at low interest rates. D. Usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.
According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?
A) increase the age at which retirement benefits begin to be paid B) promote government saving and investment to increase real GDP over time C) borrow from the public to finance the programs D) reform the health care system to encourage more competition to reduce health care expenditures