Other things constant, an increase in resource prices will
a. increase the demand for goods and services.
b. increase the cost of producing goods and services, which will lead to a higher price level.
c. reduce costs and improve profit margins, which will lead to an increase in aggregate supply in the goods and services market.
d. cause the natural rate of unemployment to rise.
B
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Suppose a small regional airport is served by one of the major airlines, and a new low-cost airline enters the market
If the major airlines cuts its air fares in this market to levels that are below its marginal cost in response to the other firm's entry, then the major airline may be engaging in A) parallel conduct. B) parallel pricing. C) predatory pricing. D) unlawful collusion.
Which of the following is true? a. People specialize by concentrating their energies on the activity to which they are best suited, because they incur lower opportunity costs as a result. b. One advantage of specialization is that workers acquire greater skill from repetition
c. If a person, a region, or a country can produce a good or service at a lower opportunity cost than others, we say that they have a comparative advantage in the production of that good or service. d. All of the above are true.
In 2011, the U.S. federal government collected approximately how much in total tax receipts?
a. $800 million b. $2.5 billion c. $5.2 billion d. $8.7 billion
A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers' surplus for avocado buyers, _______________ producers' surplus of avocado growers and __________________ tariff revenue. Because the loss to _____________ is more than the gain to ___________________, there is a net loss to society
A) raises; increases; decreases; generates; producers; consumers and government B) lowers; increases; decreases; does not generate; producers; consumers C) raises; increases; decreases; does not generate;consumers; producers and importers D) raises; decreases; increases; generates; consumers; producers and government