Economic growth at constant world prices will ________ cause the output of one good to fall absolutely
A) never
B) sometimes
C) always
B
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When a tax is imposed on a good for which both demand and supply are very elastic,
a. sellers effectively pay the majority of the tax. b. buyers effectively pay the majority of the tax. c. the tax burden is equally divided between buyers and sellers. d. None of the above is correct; further information would be required to determine how the burden of the tax is distributed between buyers and sellers.
Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers
a. both labor and capital to be fixed. b. both labor and capital to be variable. c. labor to be variable and capital to be fixed. d. capital to be variable and labor to be fixed.
When it comes to ________ goods, it is important to remember only one level of output can be realized and consumers are ________ for that level.
A. private; willing to pay different amounts B. public; willing to pay different amounts C. private; only willing to pay the same amount D. public; only willing to pay the same amount
Two heavy equipment manufacturers might collude in an effort to do all of the following except one. Which is the exception?
a. determine a more advantageous price and quantity b. prevent new entry into the market c. take advantage of the legal benefits that U.S. cartels receive d. increase their combined profits e. predict the behavior of other competitors in the heavy equipment market with greater certainty