An expectation of increased prices of a good in the future is likely to:
A. have no impact on current demand.
B. increase current demand.
C. decrease current demand.
D. only affect seller's decisions.
Answer: B
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Suppose a factory can be designed to produce either trucks or cars. The figure above shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars
a. What is the marginal benefit of the 25th truck? b. What is the marginal cost of the 25th truck? c. Should the 25th truck be produced? Why or why not. d. What is the marginal benefit of the 75th truck? e. What is the marginal cost of the 75th truck? f. Should the 75th truck be produced? Why or why not? g. What is the allocatively efficient quantity of trucks?
Which of the following statements is true?
A) Social planners are only concerned with efficiency and not equity. B) Social planners are only concerned with equity and not efficiency. C) To some, efficiency means an even distribution of goods across society. D) To some, equity means an even distribution of goods across society.
According to the classical growth theory of Thomas Malthus
A) labor productivity increases continuously. B) the population growth rate is fixed. C) technological advances lead to permanent increases in real GDP per person. D) increases in real GDP per person are only temporary.
If a firm is experiencing diminishing returns to a variable input, then:
a. it must be hiring less-productive units of the variable resource. b. it must be experiencing diseconomies of scale. c. the marginal physical product of the variable input must be decreasing. d. the average physical product of the variable input must be decreasing. e. its total product must be decreasing.