Because it has a direct effect on the hiring decisions of firms, a change in business confidence has a much larger impact on the level of economic activity than does a change in consumer confidence. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The “minimum efficient scale” of operation in an industry is defined as: A) the smallest plant size that can be operated by firms in the industry. B) the scale of operation at which economies of scale are exhausted. C) the smallest number of firms that could effectively meet demand for an industry’s output. D) the […]
Date: September 10th, 2020
You are given the following consumption function C = 50 + .80YD. What is the amount of autonomous consumption expenditures? A) 75 B) 100 C) 5 D) 50 ANSWER D
Date: September 10th, 2020
Which of the following statements regarding OPEC is false? A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC’s membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC’s ability […]
Date: September 10th, 2020
If government spending exceeds the amount of taxes collected from households and businesses, the government simply finances the difference by printing more money. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The marginal propensity to save is defined as: A) ΔC/ΔYd. B) ΔS/ΔYd. C) ΔYd/ΔC. D) ΔYd/ΔS. ANSWER B
Date: September 10th, 2020
Which of the following would make it easier to maintain an effective collusive agreement in a cartel? A) An increase in the number of potential entrants into the industry. B) A decrease in the elasticity of demand for the cartel’s product. C) An increase in the number of substitutes for the product produced by the […]
Date: September 10th, 2020
If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are: A) complements. B) substitutes. C) inferior goods. D) totally unrelated to one another. ANSWER B
Date: September 10th, 2020
The list of the major factors that create economies of scale includes all of the following except: A) specialization and division of labor. B) quantity discounts. C) an increase in demand for the firm’s output. D) the use of automation devices. ANSWER C
Date: September 10th, 2020
All else constant, an increase in the amount of government spending on roads and bridges would cause GDP in the domestic economy to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
