As the firm in the above diagram expands from plant size #3 to plant size #5, it experiences:

A. diseconomies of scale.
B. increasing returns.
C. constant costs.
D. economies of scale.


Answer: A

Economics

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The employment-to-population ratio is equal to the number of

A) unemployed people divided by the total population then multiplied by 100. B) employed people divided by the working-age population then multiplied by 100. C) employed people divided by the total population then multiplied by 100. D) unemployed people divided by the working age population then multiplied by 100.

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On a straight-line downward-sloping demand curve, the maximum elasticity of demand occurs

A) at its vertical intercept. B) at its midpoint. C) at its horizontal intercept. D) where it intersects the supply curve.

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If the quantity desired of something exceeds the amount available at zero price, that item is called

A) capital. B) an economic good. C) an intangible good. D) a bad.

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The larger the multiplier, the more stable the economy

a. True b. False

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