If the long-run supply of rice is perfectly elastic, then
A) as people's incomes rise, the quantity of rice supplied decreases.
B) as the price of corn falls, the quantity of rice demanded decreases.
C) in the long run, a large rise in the price of rice causes no change in the quantity of rice supplied.
D) in the long run, an increase in the demand for rice leaves the price of rice unchanged.
D
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Which of the following is an incorrect statement? a. An economy with many unemployed workers and idle factories is not operating efficiently. b. Idle factories represent unemployed capital resources
c. A large amount of unemployed resources will shift the production possibilities curve outward. d. Idle farms represent unemployed land resources.
Which of the following is not true regarding the incentives different pay structures impose on workers?
A. Piece rates are an option when individual output is easily measured by firms. B. Tournaments can elicit more effort than a time rate. C. Worker productivity is unrelated to the pay structure. D. Profit sharing is a pay structure designed to elicit more effort from workers, but it can suffer from free-riding. E. Worker effort can be a function of the pay structure.
Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $0.50 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________ the supply of international reserves by purchasing New Pesos.
A. lower; decrease B. raise; increase C. lower; increase D. raise; decrease
A typical professional National Football League team has three quarterbacks on its roster. What is one reason why they might not have a fourth quarterback?
A) The fourth quarterback's marginal product is approximately zero. B) The fourth quarterback's marginal product is approximately ten. C) The fourth quarterback's marginal product is less than the first quarterback's marginal product. D) There is a law against carrying four quarterbacks on a team.