Economists who favor bigness in firms point to which of the following to support their argument?
a. economies of scale
b. perfect competition
c. need for antitrust
d. advantages of marginal cost pricing
e. constant returns to scale
A
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How does minimum wage affect employment?
a. The number of people who want to work fluctuates, contributing to unemployment. b. The number of people who want to work remains fixed, reducing unemployment. c. More people want to work than employers are willing to hire, contributing to unemployment. d. Fewer people want to work than employers are willing to hire, reducing unemployment.
How does the expenditure multiplier change when investment spending increases?
a. It increases. b. It decreases. c. It does not change. d. It briefly increase before returning to equilibrium.
Normative economic statements
A) violate the law of ceteris paribus. B) contain value judgments. C) are usually irrational. D) are easily testable.
The number of banks in the U.S. has fallen almost by half in the past twenty years or so. Was this the result of bank failures or were some due to another cause? Explain.
What will be an ideal response?