There are never any adverse consequences of government attempts to modify the laws of supply and demand.
Answer the following statement true (T) or false (F)
False
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Economists may disagree about how to solve an economic problem because they
A. may not be able to use the same models. B. always make the same value judgments. C. are unable to assemble all of the necessary facts about the economy. D. All of these responses are correct.
Because the productivity of labor decreases as the quantity of labor employed increases
A) the quantity of labor a firm demands increases as the real wage rate decreases. B) the quantity of labor a firm demands increases as the money wage rate decreases. C) the labor demand curve shifts right as the real wage rate decreases. D) the aggregate production function shifts upward as the real wage rate decreases.
There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages). The free range technique has a much more elastic supply curve than the factory technique
When the demand for eggs falls: A) egg production using the factory technique falls less than with the free range technique. B) egg production using the factory technique falls more than with the free range technique. C) the production using both techniques falls by the same amount. D) the factory egg producers supply curve shifts inward. E) the free range egg producers supply curve shifts inward.
Both firms in a Cournot duopoly would enjoy lower profits if:
A. each firm simultaneously increased output above the Nash equilibrium level. B. one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output. C. the firms simultaneously reduced output below the Nash equilibrium level. D. None of the answers is correct.