The demand for a resource rises as
A. its productivity rises and the relative prices of substitutable resources rise.
B. its productivity rises and prices of substitutable resources fall.
C. its productivity falls and the relative prices of substitutable resources fall.
D. its productivity falls and prices of substitutable resources fall.
A. its productivity rises and the relative prices of substitutable resources rise.
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In a certain economy, the components of aggregate spending are given by:C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 3,800 B. 350 C. 410 D. 3,500
If the price level increases,
A) the buying power of your checking accounts rises with it. B) the economy tends to grow faster. C) there is no effect on buying power. D) the buying power of your checking account falls.
Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy. b. earn "good will" from the World Bank. c. prevent chronic surpluses from driving down domestic prices. d. acquire other things they want to consume. e. reduce the size of their foreign trade deficit.
If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that
A. China was successful and the Soviet Union was not. B. The Soviet Union was successful and China was not. C. Both the Soviet Union and China were successful. D. Neither China nor the Soviet Union were successful.