In response to an increase in the demand for its goods, a firm takes a bank overdraft, buys raw materials with the money so raised, and increases production. The firm can be said to have resorted to:

Which would you include when calculating the GNP?

_______________ is a tariff that maximizes a country's welfare.

The breakdown of the gold standards was the result of which of the following factors?

1. Deflation policies caused considerable difficulties.

2. Some gold standard countries did not obey the gold standard rules.

3. Sterling was over valued.

4. The export of gold became impossible.

Which hinder economic development?

When the production process is subject to increasing returns to scale, the returns to a variable factor of production:

_____________ refers to the change in the output of a firm or industry in the long run, when all inputs are increased or decreased simultaneously in the same ratio.

Economics can be defined as:

Which of the four equations given below is INCORRECT?

Isoquant maps _____________:

Indices of the physical volume of production are NOT widely used to measure development because: