If the demand for softballs increases, one could expect the demand for leather to increase. This is due to the
a. principle of diminishing marginal product
b. change in the opportunity cost of producing a softball.
c. reduction in the cost of producing softballs.
d. demand for an input being a derived demand.
d
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A Canadian oil company hires geological survey services from the United States. If all else remains equal, this will
A) increase the financial account. B) decrease the current account balance. C) increase the balance of trade. D) increase net exports.
Empirical evidence shows that the quantity theory of money is a good theory of inflation
A) in the long run, but not in the short run. B) in the short run, but not in the longrun. C) in both the long run and the short run. D) not in either the long run nor the short run.
Efficiency wage models imply that workers are more productive when they are paid a higher wage, as compared to when they are paid a lower wage
Indicate whether the statement is true or false
Some economists believe that government bailouts privatize the benefits of doing business and socialize the costs, leading to more companies needing to be bailed out
Indicate whether the statement is true or false