Which of the following is NOT a reason why a firm may experience economies of scale?
A. productive specialization
B. improved productive equipment
C. increased layers of management
D. dimensional factors
Answer: C
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Which would be a better source of tax revenue for the government, a good with elastic or a good with an inelastic demand? Explain your reasoning
What will be an ideal response?
The data lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.
The No Marginal Improvement Principle tells us that, at the best choice:
A. the marginal benefit of the last unit must be at least as large as the marginal cost and the marginal benefit of the next unit must be no greater than the marginal cost. B. marginal cost and marginal benefit of the last unit must always be equal. C. the marginal benefit of the last unit must be at least as large as the marginal cost and the marginal benefit of the next unit must be greater than the marginal cost. D. small changes in the level of an activity will always increase net benefit.
The bigger the money multiplier is the:
A. greater the amount of private demand for loans. B. smaller the reserve ratio must be. C. less a bank can loan out. D. less money is created in the economy.