An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____
a. marginal cost; upward
b. transaction cost; upward
c. marginal cost; downward
d. transaction cost; downward
A
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When discussing the CPI, the term "commodity substitution bias" refers to changes in
A) prices that lead business to change the items they buy. B) quantities that lead households to change the items they buy. C) prices that lead households to change the items they buy. D) income that lead households to change the items they buy. E) stores so that consumers switch from one store to another.
As more pollution is abated, the marginal social benefit from further abatement diminishes
a. True b. False
Which of the following statements is true for the average individual investor interested in stocks?
a. Trying to pick the stocks that will gain a great deal in the future is a risky and unlikely way to become rich. b. The majority of individual financial investors outguess the market better than professionals. c. Stocks are both low risk and low return but have high liquidity. d. Investing in stocks, bonds, or gold will (on average) provide about the same rate of return in a fiscal year.
The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their
a. transitory income for the year of the frost likely exceeds their permanent income. b. permanent income likely exceeds their transitory income for the year of the frost. c. permanent income will be more affected by the frost than their transitory income. d. Both a and c are correct.