In the specific factors model, a 5% increase in the price of food accompanied by a 1% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) an ambiguous change; an increase; a decrease
B) an ambiguous change; a decrease; an increase
C) an ambiguous change; an ambiguous change; an ambiguous change
D) a decrease; an ambiguous change; an ambiguous change
E) an increase; a decrease; an increase
A
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Negative supply shocks can have a tendency to ________ costs of production and ________ the inflation rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
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Which of the following is an experiment which tests whether fairness is important in consumer decision making?
A) the fair trade principle B) the ultimatum game C) the preferential treatment game D) the behavioral experiment
What are the formulas for total revenue, average revenue, and marginal revenue
What will be an ideal response?