Refer to the graph shown. If the firm wishes to double output from 500 to 1,000:
A. average total costs will rise.
B. average total costs will remain the same.
C. average total costs will fall.
D. it is impossible to determine what will happen to average total costs.
Answer: B
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The prices of most services have risen much faster than inflation in recent years because
A. wages and salaries of service providers have risen much faster than inflation. B. wages and salaries of service providers have risen, but their productivity has not. C. the productivity of service providers has risen dramatically. D. the demand for services has risen.
Refer to Table 7.1. Output is increasing at
A) a diminishing rate. B) an increasing rate. C) a constant rate. D) a negative rate.
Any increase in efficiency increases only profits of producers, with no increase in output
a. True b. False Indicate whether the statement is true or false
Which of the following is classified as a transfer payment and not as income?
(a) Monthly payments received from CIT by your economics lecturer; (b) Monthly payments received from CIT by scholarship students at CIT; (c) Monthly payments received by members of the Judiciary; (d) Dividend payments received by the shareholders of a company.