In the long run, a fall in the input price causes less of an increase in factor demand
A) if the increase of product supply affected price.
B) if the market price will decrease too.
C) if the market price remain constant.
D) if the factor demand is more elastic.
C
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Refer to Table 2.4. The principle of diminishing returns sets in with the addition of the ________ tank of fertilizer
A) second B) third C) fourth D) fifth
Consumer surplus:
a. is minimized in market equilibrium. b. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. c. measures the value between the price consumers are willing to pay for a product and the price they actually pay. d. measures the price at which sellers extract excess profits from consumers.
A simple model used in your textbook to show how an economy works is the
a. renewable resources model b. normative economic model c. insatiable wants model d. econometric model e. circular flow model
Josiah installed a metal sculpture in his front yard. A negative externality arises if the sculpture a. increases the value of other properties in the neighborhood. b. decreases the value of Josiah's home
c. is visually appealing to Josiah's neighbors. d. creates a safety hazard for neighborhood children.