Category: Economics

➤ Is drilling for oil considered resource maintenance?
Drilling for oil is typically extraction, not maintenance. It removes natural capital and reduces resource stocks unless paired with conservation or restoration. Sustainable management could include activities that balance extraction with replenishment, but ordinary drilling depletes reserves and counts as production of natural resources rather than preserving them.

This perspective of group theory focuses on how groups can use communication to achieve important tasks like coordination and decision-making.
Critical
Cultural
Functional
Temporal
None of the above

Challenge Exam Macroeconomics14 of 100
Which of the following events would cause interest rates to increase?
Open market to buy bonds
Lower reserve requirements
Lower tax rates
Higher discount rate

➤ Can firms lower prices when inventories fall unexpectedly?
No, lowering prices is rarely logical when inventories fall unexpectedly. Reduced stock signals stronger-than-expected demand, so cutting prices would deplete inventories further. Firms usually maintain or raise prices, limit discounts, or prioritize orders while they focus on ramping supply and improving forecasts.

Loyalists made up about 20% of the American colonial population and were centered inwhich two cities?
Raleigh and Charleston
Princeton and Trenton
New York City and Philadelphia
Boston and Concord

Which of the following forms of city government derives from the idea that policymaking and administration areseparate functions?
representative town meeting
council-manager
commission
town meeting

Which of the following is NOT an example of a leading indicator?
Competitive analysis on wages, bonuses and benefits
Inventories to sales ratios
Number of user dowloads
Index of consumer confidence

Show me the steps to solve Under constant returns to scale, average cost as the quantity produced increases. Over this range of output, the marginal cost curve is the average cost curve.
State the constant returns to scale (CRS) property: for any scalar α > 0, the production function satisfies f(αK, αL) = α f(K, L).
Write the cost-minimization problem for output q:
C(q) = min_{K,L} [rK + wL] subject to f(K,L) = q,
where r and w are input prices.
Use scaling: if (K*, L*) is cost-minimizing for output 1, then (qK*, qL*) produces q. By CRS, costs scale linearly, so C(q) = q · C(1).
Compute average cost:
AC(q) = C(q) / q = [q · C(1)] / q = C(1),
so average cost is constant as quantity increases.
Compute marginal cost:
MC(q) = dC/dq = d[q · C(1)]/dq = C(1),
hence MC(q) = AC(q) for all q in this range.
Conclusion: Under CRS, average cost remains constant as output increases, and the marginal cost curve coincides with the average cost curve over this range.