Resource markets are like any other market in that
a. the increase in quantity supplied in response to a higher price will generally be greater in the long run than in the short run.
b. the amount demanded of a resource is inversely related to its price.
c. higher prices encourage people to search for substitutes.
d. all of the above are correct.
D
You might also like to view...
English mercantilism recognized the law of comparative advantage, thus permitting individuals to specialize in producing those goods and services which they could produce at relatively low opportunity costs and trading those items for those which
they could not. Indicate whether the statement is true or false
Externalities are created when parties not involved in an economic transaction are affected by it.
Answer the following statement true (T) or false (F)
Which of the following is NOT a reason why the United States is able to produce such high levels of GDP?
A.) Abundant factors of production. B.) Labor-intensive production process. C.) High levels of investment in human capital. D.) High quality of capital.
What a firm must pay for its inputs is referred to as its:
A) production value. B) cost of production. C) opportunity cost. D) loss in production.