If the supply of pencils, a substitute for pens, increases, what will happen to the equilibrium price of pencils and to the equilibrium price of pens?
The equilibrium price of pencils will fall. The equilibrium price of pens will fall.
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Typically, labor unions favor trade restrictions because a. the quality of imported goods that workers buy are poor. b. the lower prices of the imported goods results in a decrease in the demand for domestic goods and the labor that produces them
c. foreign workers would have to be paid the same wage as domestic workers. d. it means more revenue for the government. e. the restrictions lower the prices of the imported goods that workers buy.
The ________ approach is a method of calculating GDP by adding up all payments to owners of resources used to produce output during the year
a. expenditure b. income c. double counting d. investment
Suppose the interest rate is 10 percent. Which of the following payments has the largest present value?
a. You receive $90.91 two years from today. b. You receive $82.64 one year from today. c. You receive $75.13 today. d. All of these payments have the same present value to the nearest cent.
Refer to the graph shown. The output range in region c is associated with:
A. constant returns to scale. B. diminishing marginal productivity. C. economies of scale. D. diseconomies of scale.