Which of the following causes a movement upward along the aggregate demand curve?
A. a fall in wages
B. an increase in the price level
C. an increase in government spending
D. an increase in the money supply
Answer: B
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Which of the following would not limit the extent of a firm's vertical integration?
a. the managers' bounded rationality b. a large minimum efficient scale of producing inputs relative to the firm's input requirements c. the fact that the quality of inputs is easily determined at the time of purchase d. many interchangeable suppliers of the firm's inputs e. high transaction costs of contracting with resource suppliers
A typical market supply curve
a. is identical to the firm's marginal cost curve b. does not reflect any external cost borne by third parties c. is identical to the firm's marginal revenue curve d. reflects external benefits enjoyed by third parties e. is perfectly inelastic