An important reason why diseconomies of scale arise is because firms may have to hire lower-skilled workers as firms expand
Indicate whether the statement is true or false
FALSE
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Moving along the aggregate supply curve, when the price level rises,
A) the quantity supplied decreases. B) the quantity supplied increases. C) the aggregate demand curve shifts rightward. D) the aggregate demand curve shifts leftward. E) the quantity supplied does not change because the aggregate supply curve is a vertical line.
When deciding whether to buy a second car, the economic way of thinking indicates that the purchaser should compare
a. the benefits expected from two cars with the cost of both. b. the additional benefits expected from a second car with the cost of the two cars. c. the dollar cost of the two cars with the potential income that the cars will generate. d. the additional benefits of the second car with the additional cost of the second car.
The assumptions that form the basis of any economic model are referred to as:
A. theorems. B. objectives. C. building blocks. D. precepts.
Why is the long-run aggregate supply curve a vertical line?
A. At that level of real GDP, the production costs are at their lowest level. B. At that level of real GDP, the unemployment rate is 0 percent. C. At that level of real GDP, production costs have fully adjusted to price changes. D. At that level of real GDP, the inflation rate is 0 percent.