To manufacture 1,000 pairs of shoes in a week, a firm must use at least 1,500 workers and 5 machines or 100 machines and 150 workers. Which method can be technically efficient?

A horizontal merger is one in which the merging firms

a. are about the same size b. produce the same good in the same industry c. will control greater than 50 percent of the market d. have never directly competed in the past e. will double the concentration ratio in the industry

The prevailing budget philosophy prior to Keynes called for a balanced budget. Keynes argued that the government should not balance its budget but instead have budget deficits during

a. economic booms. b. during periods of peace but surpluses during periods of war. c. periods of inflation. d. economic recessions.