The difference between economies of scale and economies of scope is:
a. economies of scale occur whenever inputs can be shared in the production of different products
b. economies of scope occur whenever inputs can be shared in the production of different products
c. economies of scale can occur when two or more products are produced
d. economies of scope can occur when two or more products are produced
e. both b and d
e
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According to your textbook, a scientist of any kind
A) works with some assumptions and biases. B) never confront tradeoffs. C) offer only the best evidence to support his or her theory. D) be the best candidate for the Nobel Prize in Economics.
Assume that the actual inflation rate is 3 percent, the target inflation rate is 3 percent, and that the percentage difference between actual and potential real GDP is 2 percent. According to the Taylor rule, the federal funds rate target should be
A) 3.5 percent. B) 6.5 percent. C) 5.5 percent. D) 5.0 percent.