In the specific factors model, a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by less then 5%; decrease; increase
B) increase by 5%; remain unchanged; remain unchanged
C) increase by more then 5%; increase; remain unchanged
D) remain constant; increase; increase
E) remain constant; decrease; decrease
A
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The balanced budget multiplier is
A) positive because the magnitude of government expenditure multiplier is larger than the magnitude of tax multiplier. B) negative because the magnitude of government expenditure multiplier is larger than the magnitude of the tax multiplier. C) positive because the magnitude of government expenditure multiplier is smaller than the magnitude of tax multiplier. D) equal to zero. E) negative because the magnitude of the tax multiplier is larger than the magnitude of the government expenditure multiplier.
Answer the following statements true (T) or false (F)
1) The American Rule states that the plaintiff must pay their legal fees only the court rules in favor of the defendant. 2) The actual amount a plaintiff will win in a lawsuit is a random variable. 3) From an economic perspective, the decision to settle or litigate depends on actual guilt or innocence. 4) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentive to settle. 5) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentiv333) The larger a defendant's expected payment to a plaintiff, the more likely the case will be settled regardless if the expected payment is high due to the plaintiff's probability of winning, or if there is a large potential damage payment.e to settle.
A government-inhibited good is often
A) produced by the government. B) subsidized. C) taxed. D) advertised.
The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which good's quantity demanded is more responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.