When economies of scale exist:
a. per unit production costs increase as output expands
b. per unit production costs decline as output expands.
c. marginal cost must decrease as output expands.
d. per unit production costs remain constant as output expands.
b
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The ease with which an asset can be
a. traded for another asset determines whether or not that asset is a unit of account. b. transported from one place to another determines whether or not that asset could serve as fiat money. c. converted into a store of value determines the liquidity of that asset. d. converted into the economy's medium of exchange determines the liquidity of that asset.
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A. collective bargaining. B. adverse selection. C. moral hazard. D. counter information.