The quantity demanded of an input normally rises as its price rises.
Answer the following statement true (T) or false (F)
False
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Use the following table to answer the next question.OutputATC-1ATC-2ATC-3ATC-41,500$10$15$20$302,00091217252,50081015203,00012713183,50015611164,00018107144,50020128125,00024151195,500291913126,00035251514Plant sizes get larger as you move from ATC-1 to ATC-4.At what level of output are economies of scale exhausted by this firm?
A. 3,500 units B. 4,000 units C. 2,500 units D. 5,500 units
The average price of gasoline in your neighborhood is $2.15 per gallon
Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? A) No, my friend is misled; clearly, the lower-priced gasoline must be of inferior quality and could damage vehicles. B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods. D) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
One key assumption of the classical model is
A) government spending plays a major role. B) money illusion cannot fool workers. C) wages are sticky. D) prices are sticky.
If the exchange rate is 12.5 pesos per U.S. dollar, it is also 1/12.5 U.S. dollars per peso
a. True b. False Indicate whether the statement is true or false