The Economy's Aggregate Supply (AS)curve Is Assumed to Slope Upward

question 141

Multiple Choice

The economy's aggregate supply (AS) curve is assumed to slope upward because

• A)inputs become more expensive at higher levels of output.
• B)inputs become less expensive at higher levels of output.
• C)firms' unit costs rise as output increases.
• D)firms' unit costs fall as output increases.
• E)aggregate demand increases at higher levels of national income.

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Definitions:

Product Specialization

A strategy where a business focuses on the production and development of a particular product or range of products, often to achieve higher levels of efficiency and expertise.

Economies of Scale

Cost advantages obtained due to increased production levels, where the cost per unit of production decreases as the volume produced increases.

Economies of Scope

Cost advantages that a business obtains through the diversification of product lines, enabling more efficient use of resources.

Behavioral Target Marketing

A marketing strategy that uses consumer behavior, including browsing and purchasing history, to tailor advertising and promotions.