If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. decrease.
B. increase.
C. stay the same.
D. None of these statements is true.
B. increase.
You might also like to view...
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence
What components of aggregate demand were affected and what was the impact on real output? What were the policy options?
The Troubled Asset Relief Program ________
A) led to the creation of the Federal Reserve System B) helped contribute to the stock market crash of 2006-2007 C) shifted non-performing assets off the balance sheet of the Federal Deposit Insurance Corporation onto the balance sheet of Fannie Mae and Freddie Mac D) authorized the Treasury to by mortgages from troubled financial institutions
What is the main body assisting the Board of Governors of the Federal Reserve System in determining monetary policy?
A. Federal Advisory Council. B. U.S. Congress. C. U.S. Treasury. D. Federal Open Market Committee.
The production possibilities curve bows out because
A. of the law of increasing additional cost. B. resources are not being fully utilized. C. production is efficient. D. production is inefficient.