For a constant returns to scale production function:
a. marginal costs are constant but the average cost curve has a U-shape.
b. both average and marginal costs are constant.
c. marginal cost has a U-shape; average costs are constant.
d. both average and marginal cost curves are U-shaped.
b
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When analyzing the effects of the government budget deficit
A) no distinction must be made between an economy where full employment exists and one where substantial unemployment exists. B) it is important to examine the effects of the reported capital budget and the reported operating budget separately. C) there should be a comparison of the effect of the deficit to the effects of higher taxes needed to eliminate it. D) the baseline budget should be used since it is the most accurate.
Economists use the term "marginal" to describe costs and benefits
a. that are minimal and hardly worth noting. b. that are incremental and thus relevant to decision making. c. that are noteworthy but not the most important. d. whose importance can be minimized through hard work. e. none of the above.