A Firm Experiences ________ When Its ________ Downward as Output

question 70

Multiple Choice

A firm experiences ________ when its ________ downward as output increases.

• A) diseconomies of scale; average total cost curve slopes
• B) economies of scale; long-run average cost curve slopes
• C) diminishing marginal returns; long-run average cost curve slopes
• D) diminishing marginal returns; average total cost curve shifts

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Definitions:

Fiscal Policy

Alterations in expenditure and taxation by the government to control and impact the country's economic conditions.

National Debt

The sum of funds a nation's government has accumulated in debt, often due to spending more than its budget allows.

GDP

Gross Domestic Product represents the overall market value of all end products and services made inside a nation over a certain timeframe.

Economic Stimulus Package

A package of economic measures put together by a government to stimulate a floundering or stagnant economy and help it recover.