The longer the time period considered, the more the elasticity of supply tends to _______.
a. decrease
b. remain constant
c. increase
d. converge to zero
c. increase
The longer the time period considered, the more the elasticity of supply tends to increase.
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Foreign outsourcing refers to the
a. exporting of domestic jobs. b. exporting of domestic goods. c. selling of Treasury bonds to foreigners. d. importing of oil from U.S. companies abroad.
If the market price of a good is more than the opportunity cost of producing it,
a. the situation will remain unchanged as long as supply and demand remain in balance. b. the market price of the product will increase in the long run. c. resources will flow away from production of the good, causing supply to decline with the passage of time. d. producers will increase supply in the long run.
Which of the following is inconsistent with Keynesian models of business cycles?
a) wage and price stickiness b) coordination failure c) multiple equilibria d) efficient market allocation e) the need for stabilization policy
For some products, quality is virtually impossible to determine prior to purchase. If sellers of such commodities are rational, they will cheat or engage in unethical behavior only when:
A. production exhibits positive externalities. B. laws allow unethical behavior. C. the expected gains are greater than the expected costs. D. the expected gains are equal to the expected costs.