Relative to a mobile factor of production, economic theory suggests that the price elasticity of supply for a highly immobile factor of production (for example, land) will be
a. more elastic.
b. less elastic.
c. of unitary elasticity.
d. this is a trick question; the price elasticity of supply for factors of production is not affected by factor mobility.
B
You might also like to view...
The figure below shows an individual's demand for items from a warehouse club. All of the people who shop at the warehouse club have the same demand. If the managers use two-part pricing, the membership fee (the access fee) is ________ and the price per item (the user fee) is ________ .
A) $80; $6 per unit
B) $60; $6 per unit
C) $40; $10 per unit
D) $20; $10 per unit
Theresa opens a 5-year CD for $1,000 that pays 2% interest compounded annually. What is the value of the CD at the end of the 5 years?
a. $1,104.08 b. $1,100.00 c. $1, 020.00 d. $1,220.10
If Asian economies suffer a serious economic slump, U.S. net exports will
a. increase and AD will shift outward. b. increase and AD will shift inward. c. decrease and AD will shift inward. d. decrease and AD will shift outward.
Long-term bonds are
a. riskier than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds. b. riskier than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds. c. less risky than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds. d. less risky than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.