If long run average costs rise with output, you have
a. Increasing returns to scale
b. Decreasing returns to scale
c. Constant returns to scale
d. None of the above
b
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Compared to the situation before international trade, after the United States exports a good production in the United States ________ and consumption in the United States ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Positive economic analysis _____
a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about "what ought to be"
Prior to the Great Depression, classical economists believed that a recessionary downturn would be reversed by:
A. higher wages and prices. B. lower wages and prices. C. an expansionary monetary policy on the part of the Federal Reserve System. D. an increase in government spending that would stimulate aggregate demand.
The human and capital resources used by businesses to satisfy regulatory requirements are known as compliance costs.
Answer the following statement true (T) or false (F)