Refer to Figure 11-13. The lines shown in the diagram are isocost lines. A movement from CE to BD occurs when
A) the price of capital decreases while the price of labor increases.
B) the price of labor decreases while the price of capital remains unchanged.
C) the price of capital increases while the price of labor decreases.
D) the price of capital increases while the price of labor remains unchanged.
A
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Which of the following is likely to shift the production possibilities curve of a nation rightward?
A) An increase in the education and experience of the workforce B) An increase in the demand for the nation's exports C) An improvement in the terms of trade that the nation faces D) An increase in the price of raw materials used by the nation
Beginning from a long run equilibrium in a competitive industry, if there is a substantial, permanent increase in demand for industry output:
a. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level. b. firms will enter the industry, the quantity produced will rise, and prices will end up higher than their initial long run equilibrium level. c. firms will enter the industry, the quantity produced will rise, and prices will end up at the same level as their initial long run equilibrium level. d. firms will enter the industry, the quantity produced will rise, and but without more information, we cannot know if prices will end up higher than their initial long run equilibrium level.
Economics is primarily the study of
a. how to make money in the stock market. b. how to find lower cost methods of production. c. the choices we must make among alternatives because of scarcity. d. the proper form of industrial structure for the United States.
What does the deadweight loss of monopoly measure?
What will be an ideal response?