Which of the following would cause the price elasticity of demand for a variable input to be greater?
A) the smaller the price elasticity of demand for the final product
B) the longer the time period being considered
C) the smaller the proportion of total costs accounted for by the variable input
D) the harder it is for a variable input to be substituted for by other inputs
Answer: B
You might also like to view...
Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?
What will be an ideal response?
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank deposits are equal to
A) $1.6 million. B) $2 million. C) $4 million. D) $8 million.
Which of the following is incorrect? The ill effects of the Great Recession were:
a. Mainly restricted to large financial institutions. b. Mainly restricted to credit markets and had little effect on the real goods market. c. Mainly restricted to the U.S. stock market. d. Felt nationwide and had strong effects internationally. e. All of the above are incorrect.
The open economy effect and interest rate effect are two of the reasons why
A. capital formation does not contribute to economic growth in poor countries. B. higher price levels increase long-run aggregate supply. C. growth of the labor force does not contribute to economic growth in wealthy countries. D. the aggregate demand curve slopes downward.