The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?
A) The demand curve shifts leftward.
B) The demand curve shifts rightward.
C) The demand curve does not shift.
D) There is not enough information to tell how the change shifts the demand curve for cars.
C
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The law-making time lag is best described as the time that it takes
A) a jury to render a verdict. B) Congress to realize that new laws must be passed to change taxes or spending. C) the President to sign a bill sent from Congress. D) a newly passed law to become the norm in daily lives. E) Congress to pass laws needed to change taxes or spending.
Suppose a perfectly competitive cotton farmer can produce 10 containers of cotton at an output at which marginal cost equals marginal revenue. The price per container of cotton is $100 and the average total cost is $75
What is the profit or loss that this cotton farmer is earning? A) $750 B) $150 C) $250 D) -$25
Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing:
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
Generally, if a nation imposes a tariff on imports,
a. part of the tax is paid by foreign exporters. b. the entire tax is paid by foreign exporters. c. none of the tax is paid by foreign exporters. d. the tax has no impact on the profits of foreign exporters.