In the long run, the supply of goods is based on
a. the availability of the resources and the costs of production.
b. the availability of the resources and the level of consumers’ incomes.
c. the costs of production and consumer preferences.
d. government regulations.
a. the availability of the resources and the costs of production.
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Technological advancement creates unemployment in firms that shut down or labor that is laid off. Wealth in this case is
a. Destroyed, since firms are shutting down and production of certain goods and services decreasing b. Created, since the dislocated labor and resources are absorbed by new firms created through the technological innovation, moving them to higher value use c. Destroyed, since technological progress is leading to higher unemployment d. None of the above
Game theory is
A. the study of how people behave in strategic situations. B. the collusion of a few powerful firms to create monopoly power. C. the act of price-fixing to share markets. D. the division of a market into non-competitive areas, creating regional monopolies.
The ruling in the shrimp-turtle case resulted in:
a. the United States being able to ban shrimp caught with nets unsafe for sea turtles. b. the WTO upholding the environmental standard but ruling against the United States on technical grounds that it did not provide sufficient notice; after negotiation, however, the WTO reversed its decision. c. the WTO refusing to hear the case. d. a ruling that upheld the environmental standard.
A firm ________ if it earns zero economic profit.
A. earns exactly a normal rate of return B. earns a positive but below normal rate of return C. earns a negative rate of return D. will leave the industry