If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline
a. True
b. False
Indicate whether the statement is true or false
False
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If a firm shuts down, it
A) makes zero economic profit. B) incurs an economic loss equal to its total variable cost. C) incurs an economic loss equal to its total fixed cost. D) makes a normal profit. E) might make an economic profit, zero economic profit, or incur an economic loss.
A monopolist faces a horizontal demand schedule
a. True b. False Indicate whether the statement is true or false
When the current price of a good is below the equilibrium price:
A. there will be excess supply. B. buyers have an incentive to offer to pay sellers more than the current price. C. the price will tend to stay below the equilibrium price. D. sellers will notice their inventories are growing.
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.