If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that:
A. both relatively small and relatively large firms can be viable in the industry.
B. the industry will be a natural monopoly.
C. the industry will be comprised of a very large number of small firms.
D. technology precludes both economies and diseconomies of scale.
Answer: A
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Refer to Figure 4.1. Simon's available strategies include
A) top and bottom. B) up and down. C) left and right. D) all of the above
Which of the following is not reflected in the constant term associated with the marginal propensity to consume?
A) The level of C if Y were zero B) People's consumption with zero income C) All other influences on consumption besides income D) All of the above are reflected in the constant term.
Which of the following groups tend to have lower unemployment?
a. younger workers b. middle-aged workers c. women d. those with less education
If the government adopts an expansionary fiscal policy that requires more government borrowing in the money market, then interest rates are likely to:
A. rise and partially offset the effects of the fiscal policy. B. rise and partially reinforce the effects of the fiscal policy. C. fall and partially offset the effects of the fiscal policy. D. fall and partially reinforce the effects of the fiscal policy.