An increase in the demand for a good will tend to bid up the cost of acquiring the good more
A) if suppliers respond by quickly making larger quantities available.
B) if the cost of transferring resources out of other uses into production are low.
C) in the short run than in the long run.
D) if the supply curve is highly elastic.
C
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Suppose the current level of output is 5000. A 10% increase in productivity would increase the current level of output to
A) 5050. B) 5100. C) 5500. D) 6000.
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, an increase in the price of shovels will result in
A) fewer shovels being purchased to produce the same number of trenches. B) more workers being hired to produce the same number of trenches. C) the firm wishing to produce more trenches. D) no change in the firm's input mix.
If a perfectly competitive industry's long-run supply curve is downward sloping, we can conclude that input prices will:
a. increase as industry output increases. b. decrease as industry output increases. c. remain constant as industry output increases. d. none of these conclusions can be drawn.
Supply-side advocates believe that when taxes and regulations are too burdensome, people will: a. save less
b. work less. c. provide less investment capital. d. do all of the above.