If we plot the quantity of aluminum ore mined per year on the horizontal axis and the real annual price of aluminum ore on the vertical axis, we find that the path of price-quantity combinations generally indicates lower real prices and higher
quantities over time. Which of the following statements is a plausible explanation for this observed outcome? A) Aluminum supply shifted leftward faster than the aluminum demand curve shifted rightward.
B) Aluminum supply shifted rightward faster than the aluminum demand curve shifted rightward.
C) Aluminum supply shifted rightward and aluminum demand remained constant.
D) both A and B above
E) both B and C above
E
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The difference between a demand deposit and a NOW account is that
A) checks may not be written against NOW account balances. B) demand deposits pay no interest. C) NOW accounts pay no interest. D) checks may not be written against demand deposit balances.
All of the following are reasons for economies of scale EXCEPT
A) diminishing marginal product. B) specialization. C) dimensional factors. D) more efficient production equipment.