Other things constant, if wheat production is a price-taker industry, a decrease in the price of fertilizer used to grow wheat will
a. increase the supply of wheat.
b. increase the demand for wheat.
c. decrease the supply of wheat.
d. do both a and b.
A
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Psychological incentives:
A. can serve as commitment devices. B. are not important in non-economic settings. C. never serve as commitment devices. D. are not important in economic settings.
Economic growth is:
A. about the quality of life for all sectors of society. B. an indicator of individual poverty. C. a measurement of available resources. D. the measure of changes in real GDP.
During an economic boom:
A. the level of unemployment tends to be high. B. it is difficult for firms to recruit and retain workers. C. firms have an easier time purchasing raw materials. D. prices tend to decrease over time.
Why are firm-specific assets so important in the decision to build internally, negotiate a long-term contract, or buy on the open market?
What will be an ideal response?