Business Economics Study guides, Class notes & Summaries

3 reasons for diseconomies of scale - ANSWER: 1) problems with cooperation and morale 2) increased demand for factors of production -> their price rises 3) the Law of Diminishing Returns 3 reasons for external economies of scale - ANSWER: 1) training 2) infrastructure 3) the growth of ancillary industries 7 types of economies of scale: - ANSWER: 1) the spreading of fixed costs over a larger output 2) technical economies - ratios of length/area/volume - invisibility of factors 3...

AUDITING THEORY PRELIM REVIEWER (875 Multiple Choice Questions), Exams of Business Economics

AUDITING THEORY PRELIM REVIEWER (875 Multiple Choice Questions), Exams of Business Economics

GDP measures/ GDP is calculated by... (3)CORRECT ANSWER Aggregate output, aggregate expenditure, aggregate income 2 uses of GDPCORRECT ANSWER To compare economic welfare over time, to compare economic welfare across countries 6 determinants of consumptionCORRECT ANSWER DISPOSABLE INCOME, interest rates, consumer confidence, wealth effects, availability of credit, inflation 7 factors affecting the level of investmentCORRECT ANSWER INTEREST RATES, rate of economic growth, costs, business ...

GDP measures/ GDP is calculated by... (3)CORRECT ANSWER Aggregate output, aggregate expenditure, aggregate income 2 uses of GDPCORRECT ANSWER To compare economic welfare over time, to compare economic welfare across countries 6 determinants of consumptionCORRECT ANSWER DISPOSABLE INCOME, interest rates, consumer confidence, wealth effects, availability of credit, inflation 7 factors affecting the level of investmentCORRECT ANSWER INTEREST RATES, rate of economic growth, costs, business ...