Which of the following businesses is experiencing economies of scale?
a. With each additional tool Gravel Lane Foundry makes, its long-run average total costs goes up.
b. Helena’s Expeditions Inc. could serve more customers if only she could hire more experienced guides.
c. Average total costs are declining at Claudia’s Candies over the long-run, thanks to better deals with suppliers.
d. Circuit Shack is a well-established business with steady, predictable costs.
c. Average total costs are declining at Claudia’s Candies over the long-run, thanks to better deals with suppliers.
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Economists generally prefer to deal with emissions of pollutants
A. with direct controls. B. by encouraging people not to pollute. C. by subsidizing the installation of pollution-control equipment. D. by taxing emissions.
When aggregate demand decreases rapidly, the economy is likely to experience
A. inflation. B. an economic boom. C. economic growth. D. recession.
Under current law, Part A of Medicare is financed by a payroll tax of
A. 6.60% imposed upon employers. B. 1.45% imposed upon employers and 1.45% imposed upon employees. C. 2.90% imposed upon employees. D. 2.90% imposed upon employers.
Short-run fluctuations in output and employment are referred to as
A. Economic growth B. Business cycles C. Inventory cycles D. Recession and inflation