Which of the following most clearly illustrates the concept of derived demand?
A. An increase in the price of steak causes the demand for poultry to increase.
B. An increase in the demand for new houses leads to an increase in the demand for construction workers.
C. An increase in consumer income leads to an increase in the demand for services provided by the government.
D. An increase in the demand for new cars causes the demand for used automobiles to rise.
Answer: B
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In the model of monopolistic competition, compared to a firm with a higher marginal cost, a firm with a lower marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) lower; more; more B) higher; more; more C) lower; less; less D) higher; less; less E) higher; less; more
During the colonial period, the U.S. and other countries relied on "privateers.". Which of the following most accurately describes privateers?
a. Privateers were also known as pirates. b. Privateers were citizens who owned ships that attacked vessels from rival nations. c. Privateers were groups of convicts who stole from American sailing vessels. d. Privateers were a formal group part of the American Navy.
The total costs of using a resource are made up of
A) private costs only. B) external costs only. C) social costs only. D) internal and private costs only.
What is the new common currency used by many members of the European Union?
A. Pound B. Eurodollar C. Euro D. Mark