Given the scenario described, if the market price of hammers decreased from $15 to $13, which of the following can be said with certainty?
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. Bob’s Hardware would no longer participate in the market.
B. Total producer surplus would decrease.
C. Only Bob's Hardware will experience a drop in producer surplus.
D. Bob’s Hardware would continue to participate in the market.
B. Total producer surplus would decrease.
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A increase in net exports
a. shifts the aggregate demand schedule upward b. shifts the aggregate demand schedule downward. c. does not shift the aggregate demand schedule. d. decreases saving.
If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight, downward-sloping lines
Indicate whether the statement is true or false
Consider a nation with an endowment of iron ore and petroleum. If the nation specializes in the production of aluminum and gasoline instead of steel we can say that it is operating:
a. on its production possibilities curve. b. outside its production possibilities curve. c. inside its production possibilities curve. d. on the highest achievable production possibilities curve. e. on the lowest production possibilities curve.
“People who make more money should pay higher taxes” is an example of
A. the benefits principle. B. horizontal equity. C. vertical efficiency. D. the ability-to-pay principle.