Conditional input demands are homogeneous of degree zero in input prices.
Answer the following statement true (T) or false (F)
True
Rationale: If all input prices go up (or down) by the same percentage, the isocost slopes do not change -- which means the cost minimizing input bundles remain the same.
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According to the law of demand, if other relevant factors remain unchanged, then a rise in the price of a commodity will cause
a. a reduction in the equilibrium quantity. b. excess supply. c. suppliers to reduce their production in reaction to the lower demand. d. a fall in the quantity demanded.
A society that is inside its production possibilities frontier is efficient.
Answer the following statement true (T) or false (F)
The appreciation of the dollar will make U.S. goods ________ to foreigners and make imports ________ for U.S. residents
A) more expensive; cheaper B) cheaper; more expensive C) more expensive; more expensive D) cheaper; cheaper
In a perfectly competitive market price takers exist because there are:
A. few sellers and many buyers. B. few buyers and many sellers. C. many buyers and sellers. D. few sellers and buyers.