Which of the following statements is false?
A. In a competitive market, the price mechanism encourages conservation of a depletable resource.
B. As the price of a depletable resource rises, its known reserves often increase.
C. Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power.
D. Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.
Answer: C
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Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Within the framework of the AD/AS model, in the long run, output
a. will exceed the economy's long-run capacity. b. will be less than the economy's long-run capacity. c. will converge toward the economy's long-run capacity. d. must equal approximately 95 percent of the economy's long-run capacity.
As the amount of a variable input increases, while all other inputs are held constant, total product will
A. always increase. B. initially increase and then decrease. C. initially decrease and then increase. D. always decrease.
Which of the following is a bank liability?
A. U.S. Treasury securities B. Reserves C. Demand deposits D. Mortgage loans