When the demand curve for an input is a derived demand this means that
A) the demand curve is derived from the demand for the final product being produced.
B) the demand curve depends upon the MFC.
C) the law of diminishing marginal product does not hold.
D) the demand curve slopes upward.
A
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Why does an efficient distribution of outputs among households occur in perfectly competitive markets?
What will be an ideal response?
To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map
Also, suppose that all states initially impose state sales taxes on all goods (including food), but then the states exempt food from the state sales tax. How does this tax policy change alter the consumer's budget line? A) Makes the budget line steeper B) Makes the budget line flatter C) Parallel rightward shift D) Parallel leftward shift E) none of the above
Which of the following is considered government spending on security?
a. Social Security payments to retired police officers b. Social Security payments to disabled firefighters c. public assistance for the poor d. wage payments to astronauts e. wage payments to prison guards
What is Jim's opportunity cost of operating his own business?
a. the total amount of money he puts into capital equipment b. the value of his labor that is put into the business c. the cost of hiring his laborers d. All of the above are correct.