Minimum efficient scale occurs at the smallest level of output at which a firm can minimize long-run average costs.
Answer the following statement true (T) or false (F)
True
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The United States is less dependent on trade than most other countries because
A) the United States is a relatively large country with diverse resources. B) the United States is a "Superpower." C) the military power of the United States makes it less dependent on anything. D) the United States invests in many other countries. E) many countries invest in the United States.
Pre-merger notification requirements make merger policy more like a regulatory process
Indicate whether the statement is true or false
A small reduction in a country's growth rate is a concern to policy makers because
A) a small change can have large effects on per capita GDP over time. B) a reduction usually leads to future reductions until finally the economy stagnates. C) policy makers focus too much on economic growth and not enough on increasing savings rates. D) the larger GDP is the better the economic welfare will be in the future.
If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:
A. increase its spending by $300b. B. decrease its spending by $900b. C. increase its spending by $900b. D. decrease its spending by $300b.