Economies of scale exist when the ________ a unit of a good ________
A) average cost of producing; falls as its output rate increases
B) price; falls as its input rate decreases
C) price; rises as its output rate increases
D) average cost of producing; rises as its input rate increases
A
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A manager in a corporation is likely to be
A) both a principal and an agent. B) neither a principal nor an agent. C) an agent but not a principal. D) a principal but not an agent.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply fall. b. Neither aggregate demand nor aggregate supply change. c. Aggregate demand rises, and aggregate supply falls. d. Aggregate demand rises, but aggregate supply does not change. e. None of the above.
Define the four basic types of trade barriers.
What will be an ideal response?
The policy mix of a contractionary monetary policy and a contractionary fiscal policy will, unambiguously, lead to a decrease in the interest rate.
a. true b. false