Briefly discuss the determinants of supply other than price
What will be an ideal response?
An increase in the costs of inputs used to produce the good will cause supply to decrease, while an increase in technology will cause supply to increase. The imposition of a tax on the good would cause supply to decrease, while a subsidy on the good would cause supply to increase. An increase in the number of firms producing the good causes the market supply to increase. A change in expectations about future prices also causes current supply to change.
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What is a production function?
If workers become more productive, which of the following would happen in the labor market?
a. Labor supply would increase. b. Labor supply would decrease. c. Labor demand would increase and labor supply would decrease. d. Labor demand would decrease and so would labor supply. e. Labor demand would increase.
In economics, scarcity refers to the situation of:
A) optimizing with the use of limited information. B) having more wants than the amount of available resources. C) rationing of available goods and services by the government. D) sellers setting the prices of their products too high for people to be able to afford them.
Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud
What will be an ideal response?