If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that
a. the total expenditures (including those made by the third party) on the good will decline.
b. the demand for the good will decrease.
c. consumers will have a stronger incentive to economize on their use of the good.
d. suppliers will have less incentive to provide the good at low prices.
D
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In recent years, U.S. exports have exceeded U.S. imports
Indicate whether the statement is true or false
The largest component of output growth in the U.S. is
a. labor productivity growth. b. capital growth c. labor growth. d. knowledge growth. e. None of the above.
If Justine's money wages tripled from 2015 to 2020 and the consumer price index tripled, we would know that Justine's real wages
A. fell substantially. B. fell slightly. C. stayed the same. D. rose slightly.
The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari.
Who has the greatest comparative advantage in rice production?
A. Drew B. Kari C. Janna D. None of them