The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price
A) is less than $6.
B) is $6.
C) is more than $6.
D) could be less than, equal to, or more than $6.
C
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The GDP price index can be interpreted as
A) (nominal GDP - real GDP) ÷ 100. B) (real GDP ÷ nominal GDP) × 100. C) (real GDP - nominal GDP) ÷ 100. D) (nominal GDP + real GDP) ÷ 100. E) (nominal GDP ÷ real GDP) × 100.
When economies of scale exist,
a. production costs per unit increase as output expands. b. production costs per unit decline as output expands. c. total production costs decrease. d. total production costs increase.
Which of the following is true about those graduating with college degrees?
a. The proportion of college degrees earned by women has been declining in recent decades. b. The proportion of college degrees earned by women has been virtually constant during the last four decades. c. In 2013, only about 43 percent of those graduating from college were women. d. In 2013, only about 43 percent of those graduating from college were men.
Nonexcludability describes a condition where:
A. one person's consumption of a good does not prevent consumption of the good by others. B. there is no effective way to keep people from using a good once it comes into being. C. sellers can withhold the benefits of a good from those unwilling to pay for it. D. there is no potential for free-riding behavior.