Christine works for a firm that makes tires for cars. How is Christine's wage affected if the demand for cars increases?
The increase in the demand for cars increases the price of cars. In turn, the demand for workers such as Christine increases, and her wage increases as a result.
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Suppose there is a technology to produce Grendels such that there are diseconomies of scale after the first unit is produced. There are both fixed (a physical plant called a lair) and variable (food that grows in lairs) costs of production. Which statement is true? a. No Grendels will be produced. b. Producing multiple units increases the average fixed cost. c. There will be no more than one
firm in this industry. d. It is cheaper to make five Grendels by buying five lairs and producing one Grendel in each lair than it is to produce five Grendels in one lair. e. This is an impossible situation.
When a tax is imposed on the sellers of a good, the
a. demand curve shifts downward by less than the amount of the tax. b. demand curve shifts downward by the amount of the tax. c. supply curve shifts upward by less than the amount of the tax. d. supply curve shifts upward by the amount of the tax.
A financial security that represents a promise to repay a fixed amount of funds is a
A) share of stock. B) coupon. C) dividend. D) bond.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.