As the price of a resource falls, all else constant, we observe that:
a. firms substitute the expensive resource for the relatively cheaper resources.
b. firms substitute the cheaper resource for the relatively expensive resources.
c. the firm's ability to hire the relatively cheaper resources decreases.
d. the firm's ability to hire the relatively expensive resources decreases.
b
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Briefly and concisely define the following terms and explain their importance in the study of economics. a. excess capacity theorem b. price leadership c. kinked demand curve d. perfectly contestable market
What will be an ideal response?
What was the most influential factor in the United States' economic development during the 19th century?
A. the abundance of capital B. the abundance of labor C. mass production D. the abundance of land
Compared to a proprietorship, an advantage of a partnership is
A) that profits are not taxed twice. B) double taxation. C) the ability to take advantage of greater specialization. D) the limited liability of the partners.
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle's budget is AC. At which point does Mr. Lingle spend exactly his income?
A. A. B. D. C. E. D. The answer cannot be determined with the given information.