According to the law of supply
A. people buy less of a good when the price decreases.
B. producers provide more of a good when the price decreases.
C. people buy more of a good when the price increases.
D. producers provide less of a good when the price decreases.
Answer: D
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A country's capital stock decreased after a war while its labor supply remained constant. Which of the following will happen in this case if output is a function of capital and efficiency units of labor?
A) Its total output will remain constant. B) Its total output will decrease. C) Its per capita output will remain constant. D) Its per capita output will increase.
If market participants notice that a variable behaves differently now than in the past, then, according to rational expectations theory, we can expect market participants to
A) change the way they form expectations about future values of the variable. B) begin to make systematic mistakes. C) no longer pay close attention to movements in this variable. D) give up trying to forecast this variable.
If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase
a. True b. False Indicate whether the statement is true or false
Which of the following is an explicit cost?
a. The wages a firm pays to its workers b. The opportunity cost of an owner/entrepreneur's time invested in the firm c. The opportunity cost of the money the business owner/entrepreneur has invested in the firm d. The price of the business owner's/entrepreneur's land used for constructing a factory and a warehouse.