If the long-run supply curve is upward-sloping, it indicates that resource prices fall when:
A. Production in the industry decreases in the long run
B. Production in the industry increases in the long run
C. New firms enter the industry
D. Short-run profits in the industry are positive
A. Production in the industry decreases in the long run
You might also like to view...
Suppose that there are two factors, capital and land, and that the United States is relatively capital abundant while Canada is relatively land abundant. According to the HO model,
A) Canadian landowners should support Canada-U.S. free trade. B) Canadian capital owners should oppose Canada-U.S. free trade. C) U.S. capital owners should support Canada-U.S. free trade. D) All of the above.
The most unequal distribution of income in the above figure exists in
A) country 4. B) country 1. C) country 5. D) country 3.
Entrepreneurship is
A. the financial capital necessary to launch a new business. B. the talent to develop new products and processes and to organize production to make goods and services available. C. unskilled labor. D. the capital resources used to produce goods and services.
(Figure: Long-Run Aggregate Supply Curves) Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?
What will be an ideal response?