An increase in the price of plastic raises the cost of manufacturing DVDs. As a result, the market changes to a new equilibrium because of a(n):
a. surplus of DVDs.
b. increase in the demand for DVDs.
c. leftward shift in the demand curve for DVDs.
d. leftward shift in the supply curve for DVDs.
d
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If a firm experiences constant returns to the variable input in the short run:
A) marginal product will be greater than average variable product, but the two will become more equal as output increases. B) marginal product will be less than average variable product, but the two will become more equal as output increases. C) marginal product will be greater than average variable product, and the difference between the two will become larger as output increases. D) marginal product and average variable product will be equal over the range of output in question.
The following is an example of risk aversion
a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look poor
What is the difference between the Keynesian and rational expectations theories concerning the success of stabilization policy?
What will be an ideal response?
All of the following have contributed to rising medical care costs EXCEPT
A. rapid technological progress. B. increasing occurrences of expensive communicable disease. C. the aging of the population. D. third parties paying for most medical expenses.