If the long-run supply curve slopes downward, we know that this is
A) a decreasing-cost industry.
B) a constant-cost industry.
C) an increasing-cost industry.
D) a situation in which no input prices change as firms enter and exit the industry.
Answer: A
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According to the text there appear to be very limited opportunities for input substitution in the production of pipe organs. Which of the following is the most plausible explanation for this observation?
A) Capital costs have made it too expensive to purchase more capital stock. B) It requires a large amount of highly trained labor to produce a single pipe organ. C) The marginal productivity of additional trained workers is zero. D) The capital used in producing pipe organs is much more expensive than the labor inputs.
Refer to above Table 2-2. Choosing the prices of year 2 gives a ________ increase in real GDP because year 2 prices place a ________ valuation on quantities that have increased ________ rapidly
A) lower, higher, least B) higher, lower, most C) higher, higher, least D) lower, lower, most
The majority of elementary and secondary school expenditures is financed by federal and state income taxes
Indicate whether the statement is true or false
Technological change ________ sustained increases in standards of living.
A. is necessary for B. is helpful, but not necessary, for C. is an obstacle to D. always leads directly