In the economic way of thinking, speculation can only occur
A) in a capitalist economy.
B) in a society where time-travel is possible.
C) under uncertainty.
D) under perfect information.
E) in an underground or illegal market system.
C
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A firm decreases its scale of operation and discovers that its long-run average costs decrease. Which of the following does this indicate?
A) Labor's marginal product has increased. B) Diseconomies of scale were absent in the larger plant. C) The firm's scale initially was so large that it experienced diseconomies of scale. D) The firm's scale initially was too small to experience economies of scale. E) Its long-run marginal cost was smaller with the larger plant than with the smaller plant.
One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise. B) people buy more foreign goods when the domestic price level rises. C) the amount of money in the economy increases when the price level rises. D) firms supply less when prices rise.