Larger firms will often have lower minimum per-unit costs than smaller firms because
a. employee shirking is less of a problem.
b. large-scale output allows greater specialization for both labor and machines in the production process.
c. mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
d. all of the above are correct.
B
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Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education
His plan is likely to A) slow economic growth because it includes a provision for private education. B) have no effect on economic growth because property rights are not changed. C) speed economic growth as the quality of resources improve. D) fail because the provision for private education limits government involvement in education. E) have no effect on economic growth because government spending cannot affect the economic growth rate.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 authorized investors to bring lawsuits against credit-rating agencies for a reckless failure to get the facts when providing a credit rating
This is an example of which remedy of conflicts of interest? A) regulate for transparency B) supervisory oversight C) leave it to the market D) socialization of information production
Imagine a crude banking system based on a reserve of 100 gold coins, with circulating paper deposit claims on 500 gold coins
This situation is sustainable if, among other things, merchants ________ accept paper claims on gold as payment for their goods, and gold coins withdrawn from the banking system are ________ the system. A) will, returned to B) will, kept out of C) will not, returned to D) will not, kept out of
Assume that the Paris First National Bank currently has deposits of $20 million. If the current required reserve ratio is raised from 20 percent to 40 percent, then:
a. Paris First National Bank does not have to comply with the Federal Reserve mandate. b. required reserves will decrease from $16 million to $12 million. c. excess reserves will automatically increase by $20 million. d. Paris First National Bank must close out 4 million in loans. e. Paris First National Bank must increase its required reserves from $4 million to $8 million.