The supply function
A. does not include technology.
B. shows the relationship between the quantity supplied of X and variables other than its price.
C. recognizes that the quantity of a good produced depends on its price and supply shifters.
D. describes how much of good X will be produced at an alternative price of good X, given all the other variables being constant.
Answer: C
You might also like to view...
An economy has two workers, Jen and Rich. Everyday they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. To maximize total output, Jen should specialize in producing ________ while Rich should specialize in producing ________.
A. TVs; TVs B. radios; both goods C. radios; TVs D. TVs; radios
A wage rate that is adjusted for changes in the price level is known as the
A) nominal wage. B) minimum wage. C) functional wage. D) real wage.
If the demand for used cars decreases after the price of a new car falls, used cars and new cars are
A) substitute goods. B) inferior goods. C) normal goods. D) complementary goods. E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.
Health insurance companies impose deductibles on policies and co-payments on claims
A) to reduce moral hazard problems. B) to increase prices. C) to increase sales. D) to reduces sunk costs.