A car leasing company that expands its size by buying its competitors may run the risk of increasing production cost per unit due to:
A. diseconomies of scale.
B. economies of scale.
C. diminishing returns.
D. greater use of large-volume purchases.
Answer: A
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Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
When an economist says that the demand for a product has increased, this means that:
A. consumers are now willing to purchase more of this product at each possible price. B. the product has become particularly scarce for some reason. C. product price has fallen and, as a consequence, consumers are buying a larger quantity of the product. D. the demand curve has shifted to the left.