Diseconomies of scale refers to when in the long run:
A. an increase in the quantity of output decreases average total cost.
B. an increase in the quantity of output increases average total cost.
C. average total cost does not depend on the quantity of output.
D. None of these is true.
B. an increase in the quantity of output increases average total cost.
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The "yardstick" people use to post prices and record debts is called
a. a medium of exchange. b. a unit of account. c. a store of value. d. liquidity.
Which of the following examples would be most effective in the flat part of the SRAS demand curve?
a. The Fed begins an aggressive expansionary policy. b. The Fed keeps the monetary policy neutral. c. The Fed implements a slight contractionary policy. d. The Fed implements an aggressive contractionary policy.
Price elasticity of demand shows how
A. Responsive the quantity demanded is to a change in price. B. To compute the slope of the demand curve. C. Responsive the price is to a change in demand. D. Responsive the quantity demanded is to a change in the price of related goods.
If we compare income mobility in relative terms, we would measure whether a person's income:
A. is higher than her parents' income. B. places her higher up in the income distribution than her parents' income. C. is higher at the end of her career compared to the beginning. D. rises with age for all people.