If one firm in a perfectly competitive market doubled its output, market
a. demand would double
b. demand would increase by 50 percent
c. supply would double
d. supply would increase by 50 percent
e. supply would not be appreciably affected
E
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Because resources tend to be specialized, increased production of military goods tends to
a. decrease the opportunity cost of more military goods. b. increase the opportunity cost of more non-military goods. c. increase the opportunity cost of more military goods. d. change the position of the production possibilities curve. e. alter the slope of the production possibilities curve.
Rising labor productivity means that less labor is needed to produce the same level of output
a. True b. False Indicate whether the statement is true or false
If the cross price elasticity of demand between two goods is? negative, then the two goods are
A) substitutes.
B) complements.
C) unrelated.
D) independent.
If the economy were producing at its potential output, then the unemployment rate would be less than the target rate of unemployment.
Answer the following statement true (T) or false (F)