• Card 38 / 100: Describe a scenario in which a doubling of inputs more than doubles the output. What do economists call this phenomenon?

    Answer:
    If I double the amount of time, raw pasta, etc. that I devote to the task, I can more than double the amount of dinner I prepare. That's why it makes sense for people living in a household to take turns making dinner (and for restaurants to open). This phenomenon is called "economies of scale." Sample Partial Credit Answer Raking leaves.

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Capitalism: The Market Economy

Access: Public Peer Review

Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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