Economies of scale create __________ for existing firms, which in turn creates __________ for potential entrants
a. b and e
b. problems; opportunities
c. savings; costs
d. losses; profits
e. advantages; disadvantages
E
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Suppose that the price level does not change while real GDP decreases. As a result,
A) the quantity of money demanded decreases and there is a movement downward along the demand for money curve. B) the supply of money curve shifts leftward. C) the demand for money increases and the demand for money curve shifts rightward. D) the demand for money decreases so that households and firms hold smaller amounts of money. E) the supply of money curve shifts rightward.
If MRP > MLC, it means that a firm should
A) use less labor. B) use more labor. C) increase its fixed capacity. D) decrease its fixed capacity.
In general, GDP per capita is not highly correlated with alternative measures of quality of life
a. True b. False Indicate whether the statement is true or false
In which of the following cases does the aggregate-demand curve shift to the right?
a. The price level rises, causing the interest rate to fall. b. The price level falls, causing the interest rate to fall. c. The money supply increases, causing the interest rate to fall. d. The money supply decreases, causing the interest rate to fall.