The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for:
A. Economies of scale
B. Diminishing returns to scale
C. Diminishing marginal returns
D. Increasing marginal cost
A. Economies of scale
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Unemployment would cause an economy to
a. produce inside its production possibilities frontier. b. produce on its production possibilities frontier. c. produce outside its production possibilities frontier. d. experience an inward shift of its production possibilities frontier.
If the quantity demanded is infinitely responsive to any change in price, the demand curve is:
A. upward sloping. B. downward sloping. C. horizontal. D. vertical.
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. The happy hour combination of higher demand and lower prices is in accordance with the model of perfect competition.
Answer the following statement true (T) or false (F)
The tendency of hard-core Republicans to believe that all of the economic developments under the Obama presidency have been detrimental to the nation illustrates the:
A. Confirmation bias B. Framing effect C. Overconfidence effect D. Availability heuristic