As extraction of a nonrenewable resource increases, the supply curve shifts up because:
a. more substitutes become available.
b. competition among the existing suppliers intensifies.
c. the marginal cost of extracting any given amount increases.
d. the resource finds alternative usage.
e. the resource becomes less productive.
c
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As a firm hires more and more workers:
A) the value of marginal product of the additional workers eventually increases. B) the marginal product of the additional workers remains the same. C) the value of marginal product of the additional workers remains the same. D) the value of marginal product of the additional workers eventually decreases.
Which of the following is true of the production possibilities curve?
What will be an ideal response?
A corporation is likely to "call" a bond if
A) it goes bankrupt. B) it has short-term liquidity problems. C) interest rates fall sharply. D) interest rates rise sharply.
The IS curve is Y = 20 - 1.5r, and the aggregate demand curve is Y = 15.5 - 0.3?. When the inflation rate is 3 percent, output is ________
A) 20 B) 14.6 C) 9.5 D) 3.6 E) none of the above