A change in a price of a substitute input for labor will cause
A. a change in the demand for labor in the same direction of the price change.
B. a change in the supply of labor in the opposite direction of the price change.
C. no change in the demand for labor.
D. a change in the demand for labor in the opposite direction of the price change.
Answer: A
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The accounting identity for the economy’s factor payments can be written as ____.
A. GDP = wages + interest + rents + profits B. GDP = consumption + investment + government + intermediate goods + net exports C. GDP = wages + interest + rents + net exports D. GDP = wages + interest + rents + saving + investment
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. The introduction of satellite TV service is a form of:
A. price gouging. B. profiteering. C. market entry. D. All of these.
Refer to Table 3-4. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. At a price of $6, the quantity demanded in the market would be
A) 87 lbs. B) 95 lbs. C) 103 lbs D) 215 lbs.
Which of the following statement(s) best describes trade-offs?
a. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish. b. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. c. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. d. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.