Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon
a. True
b. False
Indicate whether the statement is true or false
True
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Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ________ packages.Number of (Identical) MachinesTotal Packages Wrapped 1110,000213,000315,000
A. 15,000 B. 17,000 C. 16,000 D. 2,000
If rent seeking was, on average, a losing proposition, _____
a. rent seekers would exit rent seeking until losses from rent seeking equaled zero b. rent seeking would stop because it was no longer profitable c. rent seekers would increase competition for scarce benefits d. rent seeker would exit rent seeking until there is a normal rate of return to rent seeking
The convergence theory states that:
A. poorer countries will grow faster than rich ones. B. rich countries will grow faster than poor ones. C. poor countries tend to converge together and stagnate. D. rich countries tend to leapfrog ahead maintaining the gap in global development.
Under perfect competition, entry of new firms into the market in the long run tends to:
a. raise the aggregate supply. b. raise the level of profit of the existing firms. c. raise the aggregate demand for goods. d. reduce the degree of competitiveness in the market. e. reduce the market power of the existing firms.