If the price of inputs falls and the level of consumer indebtedness rises:
a. Aggregate demand rises, but aggregate supply does not change.
b. Aggregate demand falls, and aggregate supply rises.
c. Aggregate demand and aggregate supply rise.
d. Neither aggregate demand nor aggregate supply change.
e. Aggregate demand rises, and aggregate supply falls.
.B
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Marginal cost is the
A) cost of an increase in an activity. B) total cost of an activity. C) cost of an activity minus the benefits of the activity. D) cost of all forgone alternatives.
Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers
A) complements; substitutes; raises; lowers B) substitutes; complements; lowers; raises C) substitutes; complements; raises; lowers D) complements; substitutes; lowers; raises
In some industries where firms experience declining average total costs over the full range of output that consumers are willing to buy,
a. a smaller firm will always have lower per-unit costs. b. many firms will tend to emerge from the competitive process. c. a single large firm will develop, and it will have cost advantages that protect it from potential rivals. d. a single large firm will develop, and it will buy out any smaller rival firms to avoid the small firms' production at a lower per-unit cost.
The classic example of a detrimental externality is
A. education. B. pollution. C. discovery of an AIDS vaccine. D. Mrs. Lewis’ prize-winning rose garden.