Why is the expected price level important?
What will be an ideal response?
Firms and resource owners make long-term agreements based on the expected price level
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State legislators who wanted to eliminate state regulation of the trucking industry would be most likely to find support among
A) business owners who must pay higher prices for deliveries as a result of the regulations. B) owners and managers of large trucking concerns. C) owners of small trucking concerns. D) unions that represent truck drivers.
In the long run, all factors of production are
A) variable. B) fixed. C) materials. D) rented.
Suppose you are the manager of Sweet Aroma, a firm that specializes in air freshener. To make your air freshener, you purchase apple skins from apple juice manufacturers. If the demand for apple juice decreases, this will cause the production of apple skins to ________ and the price of apple skins to ________.
A) decrease; rise B) increase; rise C) decrease; fall D) increase; fall
An inferior good is one that
a. people consume if their income falls b. people consume more of if their income falls c. people never consume d. people consume if their income rises e. people consume more of if their income rises