The greater the quantity and quality of complementary resources used in production, the ________ is the marginal productivity of the resource in question and the ________ is the demand for that resource
a. greater, lower
b. lower, greater
c. greater, greater
d. lower, lower
c
You might also like to view...
The United States experienced the lowest rate of productivity growth during the
A. 1950's. B. 1960's. C. 1970's and 1980's. D. 1990's and 2000's.
Which of the following might cause the inflation rate to spike up sharply?
(A) Prices on world oil markets rise steeply due to war in the Middle East. (B) Plentiful rainfall and moderate temperatures result in good harvests of wheat and soybeans. (C) The purchasing power of the average consumer decreases due to a sluggish economy. (D) The items in the CPI market basket change to account for changing consumer buying habits.
Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs:
A. will increase. B. will decrease. C. will not change. D. may or may not change.
Consider a market that is in equilibrium. If it experiences both a decrease in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely fall, while the equilibrium price cannot be predicted. C. price and quantity will both fall. D. price will definitely fall, while the equilibrium quantity cannot be predicted.