An increase in long-run average costs resulting from increases in output is
A. attributed to the law of diminishing marginal product.
B. attributed to economies of scale.
C. attributed to constant returns to scale.
D. attributed to diseconomies to scale.
Answer: D
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Government intervention in agriculture usually involves
A) price ceilings in order to keep food prices low. B) price ceilings in order to subsidize U.S. exports. C) price supports in order to keep farm incomes high. D) price supports in order to keep agricultural imports low.
The effect of an increase in aggregate supply is a(n):
a. increase in the general level of prices and a decrease in real output. b. increase in the general level of prices and an increase in real output. c. decrease in the general level of prices and a decrease in real output. d. decrease in the general level of prices and an increase in real output.