In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the sellers was larger than the effect on the buyers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase
B) rise; a decrease
C) fall; a decrease
D) fall; an increase
B
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Which resource earns the highest economic rent as a proportion of total earnings?
a. a resource specialized in one task b. a nonspecialized resource c. a resource with inelastic demand d. a resource in low demand e. a resource with elastic demand
Carl opens a 5-year CD for $1,000 that pays 3% interest compounded annually. What is the value of the CD at the end of five years?
a. $1,159 b. $1,126 c. $1,300 d. $1,150
Perfectly competitive markets feature relatively high barriers to entry
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true for a given level of output?
A. Long-run average cost will always be greater than or equal to short-run average cost. B. Long-run average cost and short-run average cost will be equal because the firm will use different input combinations in each period. C. Long-run average cost will usually be greater than short-run average cost because more output is produced over the long run. D. Long-run average cost will always be less than or equal to short-run average cost.