If the price of cotton used in making blue jeans increases, which of the following will occur?
A) There will be a movement along an unchanged supply curve for jeans.
B) The supply curve for jeans will shift rightward.
C) The supply curve for jeans will shift leftward.
D) There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.
Answer: C
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As the price of good X increases, the budget line
a. makes a parallel shift outward. b. makes a parallel shift inward. c. pivots inward. d. pivots outward.
Refer to Figure 2-10. In the circular flow diagram, market K represents
A) product markets. B) firms. C) households. D) factor markets.
When the price of an eBook is $15.00, the quantity demanded is 400 eBooks per day. When the price falls to $10.00, the quantity demanded increases to 700 . Given this information and using the midpoint method, we know that the demand for eBooks is
a. inelastic. b. elastic. c. unit elastic. d. perfectly inelastic.
Euler's theorem implies that if a production function exhibits constant returns to scale, then:
A. economic profit is zero. B. accounting profit is zero. C. the marginal product of labour equals the real wage. D. the marginal product of capital equals the real interest rate.