Which of the following is NOT one of the reasons a firm might be expected to experience economies of scale?
A) specialization
B) the dimensional factor
C) improved productive equipment
D) depreciation
Answer: D
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The fact that the aggregate demand curve slopes downward means that aggregate expenditures increase when the price level decreases
a. True b. False Indicate whether the statement is true or false
If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce
a. True b. False Indicate whether the statement is true or false
Each year around July 4 the town of Flagston has a controversy over how big a fireworks display they should have on the holiday. The three citizens have the demand functions for fireworks that are shown here. The cost per firecracker is $18. Elmer has the demand function P = 20 - Q. Ethel's demand equation is P = 12 - .6Q, and Edith has the demand P = 8 - .4Q. If the citizens got together for a city referendum on the issue, and each voted for an amount of fireworks, knowing that each would pay their share (1/3) of the cost, how would the vote come out in a majority rule situation? Why is this not the socially efficient amount?
What will be an ideal response?
Brazil should
A. specialize in the production of coffee and import hot dogs from Colombia.
B. specialize in the production of hot dogs and import coffee from Colombia.
C. import both coffee and hot dogs from Colombia.
D. not engage in trade with Colombia, but produce both coffee and hot dogs domestically.