If Greg uses a special glue to make model planes that he sells and the price of his model planes increases, then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________
a. increase; decrease
b. decrease; increase
c. increase; increase
d. decrease; decrease
e. increase; indeterminant
C
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Individual supply curves generally slope ________ because ________.
A. downward; inputs are cheaper when purchased in high volume. B. upward; of increasing opportunity costs. C. downward; sellers become more efficient with practice. D. upward; profits increase with quantity.
The division of productive activities among persons and regions so that no one individual or area is totally self—sufficient is known as
A) advantage-taking. B) comparative value. C) specialization. D) out—sourcing.
Answer the following questions true (T) or false (F)
1. The tangency between and iso-cost line and an isoquant represents the least cost combination of two inputs. 2. The iso-revenue line reflects the rate at which the market is willing to substitute between two products as their prices change. 3. The production possibilities curve reflects the different products the business can produce given efficient use of its existing resources.
Rent control continues to survive despite its flaws because
A. economists generally favor it. B. it creates economic growth in a city. C. landlords like its simplicity. D. those not displaced by the policy are beneficiaries of the policy and vote to keep it.