Holding all other prices and money income constant, if the price of food rises, then the consumer will adjust her expenditures and
A. reach an optimum on the same indifference curve.
B. reach an optimum on a lower indifference curve.
C. reach an optimum on a higher indifference curve.
D. her level of satisfaction may go up or down.
Answer: B
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if cotton-growing states experience rapid industrialization?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
In order for the law of diminishing returns to be present, we must have:
a. at least one factor of production to be fixed. b. output decreasing as more laborers are hired. c. the price of labor increasing as more workers are hired. d. simultaneous changes in labor and capital. e. double the output when labor input is doubled.
Opportunity cost is subjective because of which of the following?
a. The calculating of opportunity cost takes information on time and other alternatives which vary from person to person. b. Use of time on a project is the same for each person. c. Alternatives are the similar for every person. d. Amount of time needed to complete a task is the same for every person.
When the expenditure approach is used to measure GDP, the major components of GDP are
What will be an ideal response?