A Firm Has Increasing Returns to Scale If

question 29

Multiple Choice

A firm has increasing returns to scale if:

• A) a proportional change in the use of all inputs produces a more than proportional change in output.
• B) a proportional change in the use of all inputs produces a less than proportional change in output.
• C) a proportional change in the use of all inputs produces the same proportional change in output.
• D) an increase in capital leads to an increase in output.

Recognize the role of cultural and political movements, such as Pan-German associations, in shaping national borders and identities.

Analyze the challenges and strategies in the process of Italian unification, including military, political, and diplomatic efforts.

Discuss the socio-economic disparities between northern and southern Italy post-unification.

Explain the Austro-Prussian War of 1866 and its outcomes on German and European political landscapes.

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Definitions:

Spending

The expenditure of money on goods, services, or other items by individuals, businesses, or governments.

Classical Economics

A school of economic thought, originating in the 18th and 19th centuries, that focuses on free markets and the idea that markets, if left unregulated, will naturally adjust to equilibrium over time.

Keynes

A reference to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Classical Economists

Economists, primarily from the 18th and 19th centuries, who believed in the importance of free markets, competition, and the self-regulating nature of economies.