If the cost of producing automobiles increases, the price, equilibrium quantity and consumer surplus will most likely change in which of the following ways? Price Quantity Consumer Surplus
A. Increase Increase Increase
B. Increase Increase Decrease
C. Increase Decrease Decrease
D. Decrease Increase Decrease
E. Decrease Decrease Decrease
C. Increase Decrease Decrease
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A travel agency enters into a contract with a hotel chain which gives it priority access to 25 percent of its rooms in major tourist destinations throughout the year. The contract encourages the hotel chain to increase the number of rooms in each of these hotels. The investment made by the hotel chain corresponds to which of the following aspects of specificity?
a. Task specificity b. Locational specificity c. Dedicated specificity d. Human specificity
Which of the following would be most likely to cause an outward shift of the demand curve for electricity?
a. a decrease in the price of electricity b. an increase in the price of air conditioners c. an increase in the price of heating oil d. a decrease in the price of natural gas
GATT is an example of a successful unilateral approach to achieving free trade
a. True b. False Indicate whether the statement is true or false
If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital in dollars?
A) .5 B) 1 C) 2 D) 10