Answer the following statement true (T) or false (F)
1) The demand for a resource depends on its productivity and the market value of the product it
is producing.
2) If two resources are complementary, a decrease in the price of one will reduce the demand for
the other.
3) Other things equal, the less competitive the market in which a firm sells its product, the less
elastic will be its resource demand curve.
4) If the substitution effect outweighs the output effect, an increase in the price of a substitute
resource will increase the demand for labor.
1) T
2) F
3) T
4) T
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In the figure above
A) moving from point a to point b would require new technology. B) production at point b is efficient whereas production at point a is not efficient. C) some resources must be unemployed at point c. D) opportunity costs are decreasing.
BHP Billiton is a Canadian company that owns mines in Canada that
A) produce nickel. After World War II, BHP Billiton began to compete with another Canadian firm, the International Nickel Company. This competition eventually ended International Nickel's monopoly in this market. B) produce coal. Until World War II, BHP Billiton had a monopoly on coal in Canada. C) produce bauxite, the mineral needed to produce aluminum. BHP Billiton began to mine bauxite after World War II. This competition eventually ended the Aluminum Company of America (ALCOA)'s monopoly in this market. D) produce diamonds.
The term natural rate of unemployment refers to the minimum level of unemployment that occurs even when the economy is healthy
a. True b. False Indicate whether the statement is true or false
The principle of comparative advantage was developed by
A. Harry Truman. B. David Ricardo. C. John Maynard Keynes. D. Adam Smith.