Which of the following is the best example of a change in the seller’s input prices?
a. The amount of sales tax increases.
b. The fees charged by a law firm increase.
c. The cost of factory labor increases.
d. The price of sandwiches increases.
c. The cost of factory labor increases.
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If production point is inside the production possibilities frontier
A) it is not possible to produce more of both goods. B) production is inefficient. C) in order to produce more of one good, less of the other must be produced. D) production is in the "unattainable" region.
The bond supply curve
A) shows the quantity of bonds lenders are willing to supply as bond prices change. B) shows the quantity of bonds lenders are willing to supply as interest rates change. C) shows the quantity of bonds borrowers are willing to supply as bond prices change. D) is represented by a downward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds supplied is on the vertical axis.
The value of a loan of $50,000 after a year at 2 percent interest is:
A. $1,000. B. $52,000. C. $49,000. D. None of these is true.
The theory of comparative advantage suggests that nations should produce a good if they:
a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.