Which of the following is true?
What will be an ideal response?
The value of a good generally depends on who uses it and circumstances such as when and where it is used
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The nation's production possibilities frontier is bowed outward. Suppose that the government decides to increase the production of armaments by $20 billion, and that as a result the output of consumer goods falls by $20 billion
If a further $20 billion increase beyond the initial $20 billion increase in armaments output is sought, we can expect that the output of consumer goods and services will fall further by A) less than $20 billion. B) $20 billion. C) more than $20 billion. D) There is not enough information to determine the answer.
When two goods are perfect substitutes, their indifference curves are straight lines
Indicate whether the statement is true or false
The aggregate demand curve slopes downward because of
a. the real wealth effect, the interest rate effect, and the price level effect b. the real wealth effect, the money supply effect, and the international trade effect c. the interest rate effect, the international trade effect, and the real GDP effect d. the real wealth effect, the interest rate effect, and the international trade effect e. the real wealth effect, the interest rate effect, and the net export effect
Which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?
A. Prices are above marginal costs in the long run. B. Long-run profits are zero. C. Prices are equal to marginal costs in the long run. D. Firms produce homogeneous goods.