Market clearing prices in a market system act as
A. a way for producers to advertise.
B. a legally determined rationing device.
C. a direct measure of resource costs.
D. a signaling device.
Answer: D
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Use the following graph for the market for beef to answer the question below.
Refer to the graph, which shows that the demand for beef shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from a(n)
A. increase in the cost of cattle feed. B. decrease in consumer incomes. C. increase in the price of pork. D. decrease in the tax on beef products.
A country has a comparative advantage in producing a good when it has the lowest opportunity cost of producing that good
a. True b. False Indicate whether the statement is true or false
"Peak pricing" can often improve economic efficiency
a. True b. False Indicate whether the statement is true or false
____ occur(s) when an X percent increase in input use raises output by more than X percent, so that the more the firm produces, the lower its per-unit costs become.
A. Economies of scope B. Scale economies C. Product differentiation D. Perfect competition