Which of the following scenarios shows an increasing-cost industry?
a. As the demand for cotton shirts drops, the price of cotton suitable for making this product rises.
b. As the demand for computers rises, the price of microchips for making this product drops.
c. As the demand for raspberries rises, the price of land suitable for growing this crop rises.
d. As the demand for wooden rulers drops, the price of lumber for making this product stays constant.
c. As the demand for raspberries rises, the price of land suitable for growing this crop rises.
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Why is it likely that a market economy will perform better than a command economy?
What will be an ideal response?
A nonexclusive good is a good which:
a. is sold in low-price markets. b. is impossible to keep people from enjoying the benefits the good provides. c. is produced by a perfectly competitive firm. d. is produced at the lowest possible cost.
Expansionary fiscal and monetary policy from 2008 to 2010, took the risk of being inflationary for the sake of avoiding additional unemployment
a. True b. False Indicate whether the statement is true or false
The money multiplier formula _____.
(A) Is used by the Board of Governors to decide interest rate cuts. (B) Determines the amount of new money that will be created with each demand deposit. (C) Determines the amount of funds loaned by the Federal Reserve Bank to its members. (D) Is used by the Fed to determine the amount of currency in the economy.