If significant economies of scale continue as output increases,
a. then small firms enjoy a cost advantage over large firms
b. minimum efficient scale is small relative to market demand
c. we have the case of a natural monopoly
d. the market will disappear in the long run.
e. all firms will become large.
C
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The perpetual problem of scarcity forcing people to make choices is the basis for the definition of economics
a. True b. False Indicate whether the statement is true or false
Banks historically have used the discount window:
A. sparingly, because it is often seen as a sign of financial trouble for a bank. B. often, because it provides instant access to needed funds for banks. C. often, because its low interest rate can serve as a source of profit for banks. D. only during times of economic boom, when there is a high demand for loans.
Who almost always wins the "two-level game"?
a. international partners b. politicians c. domestic constituents d. manufacturers
The inflation tax refers to
a. the revenue a government creates by printing money. b. higher inflation which requires more frequent price changes. c. the idea that, other things the same, an increase in the tax rate raises the inflation rate. d. taxes being indexed for inflation.