Describe how a study group of economics students could experience economies of scale as they study for an economics exam
In this example, the costs of production could be the costs of studying the material, measured in time spent per chapter. Specialization of labor can produce economies of scale. Specialization of labor could occur if each member of the study group focuses on a different chapter and explains that material to the group so that each member of the group learns the material in less time than she would if she were studying alone.
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Contractionary monetary policy by the Fed could include
A) lowering the discount rate. B) decreasing government transfer payments. C) decreasing reserve requirements. D) selling government securities in the open market.
One factor contributing to the decline in cost advantages that banks once had is the
A) decline in the importance of checkable deposits from over 60 percent of banks' liabilities to 2 percent today. B) decline in the importance of savings deposits from over 60 percent of banks' liabilities to under 15 percent today. C) decline in the importance of checkable deposits from over 40 percent of banks' liabilities to 15 percent today. D) decline in the importance of savings deposits from over 40 percent of banks' liabilities to under 20 percent today.