The supply curve of a depletable natural resource is usually
A. downward sloping because the resource runs out over time.
B. upward sloping because more of the resource can be profitably extracted at higher prices.
C. upward sloping because the price of the resource rises at the rate of inflation.
D. vertical because the supply of the resource is fixed.
Answer: B
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Which of the following is a plausible explanation for a downward shift in the consumption function?
A) A decline in home values B) A decline in wages C) A decrease in the personal income tax rate D) A rise in wages
Which of the following is false? a. Markets can make products better
b. Markets can make products cheaper. c. Markets can create new products. d. Markets only result in producing those goods and services that are socially desirable.
If aggregate demand shifts to the left by $400 billion and aggregate supply is upward-sloping, then real output will decrease by
A. More than $400 billion, and the price level will not change. B. $400 billion, and the price level will not change. C. Less than $400 billion, and the price level will fall. D. $400 billion, and the price level will fall.
Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s).Recall the Application. When a patent ends and generic drugs are introduced, there is:
A. downward pressure on the price of the patent version of the drug. B. upward pressure on the price of the patent version of the drug. C. no pressure on the price of the patent version of the drug. D. no demand for the patent version of the drug.