Examples of Economies of Scale Are

question 18

Multiple Choice

Examples of economies of scale are:

• A) the additional fees financial intermediaries charge on small accounts.
• B) the decrease in overall transaction costs that occur as volume increases.
• C) the reduction in the cost per transaction that occurs as the number of transactions increase.
• D) the decrease in overall information costs that occurs as more transactions are handled.

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Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period.

Stock of Money

The total quantity of money available within an economy at a specific time, including cash, bank deposits, and liquid financial instruments.

Velocity of Circulation

The rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period.

Body Transcendence

A psychological state in which individuals perceive the self as extending beyond the physical body, often associated with peak experiences or deep meditative states.