Why is the price elasticity of supply greater if there is more time for adjustment to an increase in the price of an item?
What will be an ideal response?
If more time is available for adjustment to a price increase, then more resources can flow into an industry, and more firms can enter the industry. Thus, after a longer period of time a greater expansion of production can take place in response to the rise in the price of the item.
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Japan’s remarkable economic growth in the 20th century was a result of _____.
Regarding wage differences among various groups of workers — blacks and whites, men and women, etc. — most economists believe that
a. no such differences are evident from the available data. b. most of the differences are attributable to discrimination. c. some of the wage differences are attributable to discrimination, but there is disagreement about how much. d. none of the differences are attributable to discrimination.
Which of the following effects results from the change in the interest rate created by an increase in government spending?
a. the investment accelerator and crowding out b. the investment accelerator but not crowding out c. crowding out but not the investment accelerator d. neither crowding out nor the investment accelerator
A monopsonistic employer will pay a wage rate
A. equal to MFC. B. less than the labor's MRP. C. greater than the labor's MRP. D. equal to the labor's MRP.