Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases.
b. increases, the average cost of producing each individual unit increases.
c. decreases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
Economies of scale suggests that as the level of production increases, the average cost of producing each individual unit declines.
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Political tensions may arise from nations pegging to a center base country's currency if:
A) asymmetric shocks cause the home nation to lose the power to stabilize. B) it is determined that the center nation has been misrepresenting the value of its currency. C) financing of military spending becomes more difficult. D) interest rates are affected.
For the purpose of analyzing the gains and losses from a tax on a good, we use tax revenue as a direct measure of the
a. government's benefit from the tax. b. government's loss from the tax. c. deadweight loss of the tax. d. overall net gain to society of the tax.