If the value of the domestic currency depreciates:
a. Aggregate demand and aggregate supply rise.
b. Aggregate demand rises and aggregate supply falls.
c. Aggregate demand and aggregate supply fall.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.B
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Which of the following is true regarding the relationship between returns to scale and economies of scope?
A) A firm experiencing economies of scope must also experience increasing returns to scale. B) Economies of scale and economies of scope must occur together. C) A firm experiencing increasing returns to scale must also experience economies of scope. D) There is no definite relationship between returns to scale and economies of scope.
Implicit costs are best thought of as:
a. variable costs. b. marginal costs. c. accounting costs. d. opportunity costs. e. sunk costs.
Other things constant, an increase in resource prices will
a. increase aggregate demand. b. decrease aggregate demand. c. decrease short-run aggregate supply. d. increase short-run aggregate supply.
Among possible union strategies, the one that can both raise wages and add to employment is
A. restricting the supply of workers. B. raising the demand curve for the product or for labor. C. fixing the wage. D. striking frequently.