The demand for a factor of production depends on the:
A. supply of the factor.
B. supply of other factors of production.
C. demand for other factors of production.
D. demand for the products that it helps to produce.
Answer: D
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A car purchased by you is rival because:
a. you can prevent others from using your car. b. it has many competitors. c. your use of this car makes it unavailable for others. d. it is nonexcludable.
The chained consumer price index
a. assumes that households purchase the same bundle of goods and services over a lengthy time period. b. adjusts the quantities of the typical bundle purchased each month to reflect the substitution away from goods that have become more expensive. c. reflects changes in the prices of all final goods and services produced domestically by the citizens of a nation during a period. d. will generally result in a higher measured rate of inflation than the regular consumer price index.
In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.
Ed's construction company has the following short-run cost function: q3 - 10q2 + 36q
a. What level of output will minimize the average cost? What is the AC at this point? b. Does the production process indicate diminishing returns? How can you tell?