A production possibilities curve shows the:
A. dollar costs of producing two different goods.
B. amounts of labor and capital needed to produce one good.
C. various combinations of goods that can be produced.
D. prices of different goods that are produced in an economy.
Answer: C
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All normal goods have
A) income elasticities of demand greater than 1.0. B) price elasticities of demand greater than 1.0. C) negative price elasticities of demand. D) positive income elasticities of demand.
If the consumer has a great deal of time to adjust to an increase in the price of gasoline, which of the following is correct?
A) Quantity demanded will be relatively sensitive to the change in price. B) The percentage change in quantity demanded will be quite small relative to the percentage change in price. C) The percentage change in price will be quite large relative to the percentage change in quantity demanded. D) Demand will tend to be unitary elastic as it is for most goods in the long run.
Given the production function Y = A , if the rental price of capital is 0.133, Y = 690, and K = 1,728, what is the value of the exponent ?? If A = 1, and the real wage is 1.15, is this economy in a long-run equilibrium?
What will be an ideal response?
A successful cartel ____ supply so that member firms earn ____ profits
a. restricts; monopoly b. expands; monopoly c. restricts; no economic d. expands; no economic