The price elasticity of supply measures how
A. responsive quantity supplied is to a change in incomes.
B. easily labor and capital can be substituted for one another in the production process.
C. responsive the quantity supplied of Y is to changes in the price of X.
D. responsive the quantity supplied of X is to changes in the price of X.
Answer: D
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Define the marginal propensity to import
What will be an ideal response?
In monopolistically competitive industries
A) non-price competition through product differentiation is actively pursued by firms. B) product variety is the same as in perfectly competitive industries. C) firms do not respond to changes in consumer demand. D) firms' economic profits are protected by barriers to entry.
The interest rate effect predicts that higher prices:
a. make it more expensive to borrow, leading to higher interest rates and less investment. b. make people worse off by reducing the value of their wealth, leading them to save more and spend less. c. decrease borrowing, leading to higher interest rates and less investment. d. decrease borrowing, leading to lower interest rates and more investment. e. increase borrowing, leading to higher interest rates and less investment.
Which of the following is the slope of the production function with respect to an input?
A. The marginal physical product of the input. B. The unit cost of the input. C. The input price. D. The average product of the input.