If firms expect prices to be higher in the future and the product is not perishable, then
A. the current supply curve shifts to the left.
B. producers produce more output to hold back for the future.
C. the current supply curve shifts to the right.
D. none of the statements associated with this question are correct.
Answer: A
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Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda
A) increases the demand for peanuts. B) decreases the demand for peanuts. C) decreases the demand for soda. D) increases the demand for soda. E) has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.
What does the demand for labor depend on, directly or indirectly?
(a) The wage rate (b) Productivity of labor (c) Demand for the goods and services produced by the labor (d) All of the above
According to the text, on a kibbutz in Israel
a. farmers produce oranges no matter what the price b. members are not profit maximizers c. there is no link between an individual's effort and reward d. universal equality is seen as unrealistic e. high-tech manufacturing is not feasible
To maintain a functioning gold standard:
A) nations are obliged to exchange any amount of issued paper money for gold. B) paper money is not allowed; all transactions must be in coins or gold. C) the monetary authority cannot exchange currency for gold. D) care must be taken to keep inflation under 10%.