A 2009 Article in the Economist Noted That Some Studies

question 28

Multiple Choice

A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are

• A)smaller in closed economies than in open economies.
• B)larger in closed economies than in open economies.
• C)smaller in capitalist economies than in socialist economies.
• D)larger in capitalist economies than in socialist economies.

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Definitions:

Quality Management Analyst

A professional who assesses and analyzes the quality management systems of an organization to ensure compliance with standards and to identify opportunities for improvement.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in a decreased cost per unit.

Long-run Average Total Cost

The long-run average total cost is the per-unit cost of production when all inputs can be adjusted, reflecting the most cost-efficient scale of operation.

Long-run Total Costs

The total costs incurred by a firm when all inputs are variable and can be adjusted.