What do economists mean when they say that capital can labor can be both complementary inputs and substitutes
What will be an ideal response?
This is because capital enhances the productivity of labor, but it can also be substituted for labor.
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The slope of a production possibilities frontier measures:
A. the opportunity cost of producing one good in terms of the other good. B. the trade-off in the consumptionof one good versus the other good C. how much of the resources must be used in order to produce one the goods. D. inefficient production of a good.
Which one of the following is an example of the circular flow of GDP and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the resource market and, in turn, supply in the product market the goods and services produced by firms b. The firms go to the resource market to supply resources that households demand and, inin turn, provide households with the goods and services produced for the product market. c. Households supply resources to firms in the resource market and, in turn, demand in the product market the goods and services produced by the firms. d. The firms in the resource market pay to households in the form of wages, interest, rent, and profit—for resources demanded. e. The circuit is completed when the payments flow from households, through the product market, and to the firms for the goods and services they demand.
A monopolistic competitor is like a competitive firm in the long run, because
A. it earns zero economic profits B. both firms will increase price to increase profits. C. it earns positive economic profits. D. both firms will earn positive economic profits.
Refer to the table below, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference. In a paired-choice vote between a park and a jail:
A. A majority of the voters would favor the jail, 3-to-0
B. A majority of the voters would favor the park, 3-to-0
C. A majority of the voters would favor the jail, 2-to-1
D. A majority of the voters would favor the park, 2-to-1