Steadily improving improvements in technology, other things being equal, will result in
A. persistent deflation
B. a steadily falling price level with no change in output.
C. no change in the price level and steadily increasing output.
D. steadily rising price level (inflation) and steadily increasing output.
Answer: A
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Sugarcane can be used to produce both granulated sugar and ethanol. Recent regulations in certain countries now permit a higher amount of ethanol to be added to gasoline. An economist would expect sugarcane prices to ____, and quantity sold to ____.
A. rise; rise. B. fall; fall. C. rise; fall. D. fall; remain the same.
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward. B) The supply decreases so that the supply curve shifts leftward. C) The quantity supplied increases, but there is no shift in the supply curve. D) The quantity supplied decreases, but there is no shift in the supply curve. E) The quantity supplied decreases, and the supply curve shifts leftward.
As the quantity of labor employed decreases, the value of marginal product diminishes
Indicate whether the statement is true or false
One difference in the creation of a corporation as opposed to other forms of business is that a corporation
a. requires the receipt of a state charter b. must receive a federal charter c. must have at least 10 employees d. must operate in at least two states e. must produce at least two products