Failure to account for the increased transportation costs that would result from building fewer and more centrally located production facilities could result in firm managers selecting a scale of operation that is larger than the optimum

Which of the following applies to a real-world socialistic economy?

a. Private ownership of all factors of production. b. Government ownership of all factors of production. c. Government ownership of most of the factors of production. d. Lack of central planning.

If there is no one who is interested in borrowing from a bank:

A. the bank's excess reserves will be zero. B. there will be no process of money creation. C. the required reserve ratio must be equal to zero. D. the required reserve ratio must be equal to 100 percent.