When long-run average cost remains constant as output increases there are constant
A) marginal returns.
B) returns to scale.
C) economies of scale.
D) diseconomies of scale.
B
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In equilibrium, with exports equal to imports it must be the case that
A) leakages equal injections. B) saving plus taxes equal government expenditures plus investment. C) total expenditures equal GDP. D) All of these.
Which of the following games involving the roll of a single die is a fair bet?
A) Bet $1 and receive $1 if 3 or 4 comes up. B) Bet $1 and receive $1 if 3, 4, or 5 comes up. C) Bet $1 and receive $4 if 6 comes up. D) None of the bets is a fair bet.
Everything else equal, wages are likely to be higher when
a. the location of the job is more desirable. b. the work environment is more prestigious. c. more skill is required to perform well on the job. d. the work is safer.
Explain how expansionary fiscal policy would affect a country's balance of payments and the use of official intervention, given fixed exchange rates and an initial government budget deficit.
What will be an ideal response?