Which of the following will NOT cause increasing returns to scale and declining average costs?
a. focusing on a single product line and specializing
b. exporting goods to other countries
c. selling more in their home market
d. hiring more workers at the existing plant
Ans: d. hiring more workers at the existing plant
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A risk averse person has diminishing marginal utility of wealth
Indicate whether the statement is true or false
The United States abandoned the Bretton Woods system of exchange rates in
A) the 1920s. B) the 1940s. C) the 1970s. D) the 1990s.
Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:
A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy.
Which of the following is most subject to the lemons problem?
A) credence goods B) homogeneous goods C) search goods D) inferior goods