Suppose you are the manager of Big Boards, a firm that produces particle board. To make your particle board, you purchase sawdust from timber farms. During the process of harvesting timber, both lumber and sawdust are produced. If the demand for lumber decreases, this will cause the production of sawdust to ________ and the price of sawdust to ________.
A) decrease; fall
B) increase; fall
C) increase; rise
D) decrease; rise
D) decrease; rise
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Which of the following is true?
i. A rational choice is always made in the pursuit of social interest. ii. Economics is a social science. iii. Economists try to understand how the economic world works by testing positive statements. A) only i B) ii and iii C) only ii D) i and ii E) only iii
Under the right circumstances, what resource could be used in the production of gasoline?
A) Rosary beads B) A telephone operator C) Olive oil D) Computers E) All of the above.
Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product
What will be an ideal response?
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.