A change in the supply of one factor of production
a. will not change either the marginal productivities or the prices of other factors.
b. will not change the prices of other factors, but it may change their marginal productivities.
c. will not change the marginal productivities of other factors, but it may change their prices.
d. changes the marginal productivities and the prices of other factors.
Answer: d. changes the marginal productivities and the prices of other factors.
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Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have an identical demand for the product. b. Groups of consumers with different demand elasticities must be easily distinguishable. c. The market demand for the product must be highly elastic. d. It must be possible for buyers to resell the product at a low cost.
Voluntary trade promotes economic progress because it
What will be an ideal response?
The potential output of an economy is _____
Fill in the blank(s) with the appropriate word(s).
Which of the following is a good example of a negative externality?
A. A landfill that creates undesirable odors on surrounding property B. A forest that absorbs carbon dioxide and generates oxygen C. A "big box" retail store that outcompetes existing retail stores D. A rose garden in your front yard