When the price of wood (which is an input in the production of furniture) falls, the consumer surplus associated with the consumption of furniture
A) increases.
B) decreases.
C) does not change.
D) could be any of the above.
A
You might also like to view...
Refer to the scenario above. What is Wendy's opportunity cost of producing one earring?
A) 0.33 greeting cards B) 0.50 greeting cards C) 1 greeting card D) 2 greeting cards
If the world price of a good is below the no-trade domestic price, a country
A) will benefit from exporting the good. B) will benefit from importing the good. C) cannot benefit from trade. D) has a comparative advantage in the production of that good. E) will not engage in trade for that good.
Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign?
What will be an ideal response?
Unemployment rates in the U.S. are generally:
a. higher than in Europe b. lower than in Europe c. about the same asin Europe d. there are no unemployed in Europe