If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry
a. True
b. False
Indicate whether the statement is true or false
True
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The figure above shows the U.S. demand for labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) movement upward along the demand for labor curve from a point such as C to a point such as B. B) leftward shift of the demand for labor curve. C) movement downward along the demand for labor curve from a point such as A to a point such as B. D) rightward shift of the demand for labor curve. E) None of the above answers is correct because there is no change in the demand for labor curve.
Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury for high-income consumers but a necessity for low-income consumers. B) Salt is a rare commodity. C) Salt is a luxury good. D) Households devote a very small portion of their income to salt purchases.
Bart is seen standing in front of the cooler that contains containers of iced tea and lemonade. Moments later, we see Bart drinking iced tea, and we conclude Bart is getting more utility from that drink than lemonade. We drew that conclusion based on what economic concept?
A. Revealed preference B. Utility minimization C. Satisfaction scales D. Rational behavior
A theory must be capable of being proved wrong if, in fact, it is wrong
Indicate whether the statement is true or false