According to economic theory, under perfect competition, the price of a depletable resource
A. becomes an inaccurate signal of scarcity.
B. may fall as firms will develop substitutes.
C. will be too volatile to let markets adjust.
D. will increase as firms develop new innovations to extract the resource.
Answer: B
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Someone who is underemployed is someone who:
A. is working part-time, but wants full-time employment. B. is working in a job for which he is overqualified. C. could be contributing more output to society by either working more, or by working using more advanced skills he possesses but doesn't currently use. D. All of these describe someone who is underemployed.
It has been shown that when offered higher wages, women will work more hours. This is because
a. women tend to work more hours than men at any wage rate. b. the substitution effect is more dominant for women. c. the income effect is more dominant for women. d. women are more productive than men at higher wages.
Which of the following is an advantage of the European Monetary Union?
A. Increased cost of exchanging currencies B. A higher likelihood of conflict between members C. Increased monetary independence for each member D. Increased price transparency
Everything else held constant, an increase in planned investment expenditure ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply