The textbook suggests that the concept of needs can be quite misleading because
What will be an ideal response?
in appropriate situations there are substitutes for everything.
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The supply curve of labor becomes backward bending when
a. higher wages induce people to work more hours b. higher wages induce more people to work c. the opportunity cost of working is lowered d. increases in wages reduce the amount of labor supplied e. new employment opportunities cause the supply curve to shift to the right
The total income of capital and labor must equal the value of total:
A. production. B. investment. C. profits. D. revenue.
Suppose that there is a positive shock to investment demand: that is, at every interest rate, the desired amount of investment rises. In a closed economy with the national saving fixed, the real interest rate will:
A. fall. B. remain constant. C. rise. D. first fall and then rise.
A price restriction that tells suppliers the minimum price they can sell their goods for is also known as
A) a price ceiling. B) a quota. C) a price floor. D) deadweight loss.