Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, an increase in the price of shovels will result in
A) fewer shovels being purchased to produce the same number of trenches.
B) more workers being hired to produce the same number of trenches.
C) the firm wishing to produce more trenches.
D) no change in the firm's input mix.
D
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According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will:
a. place downward pressure on prices. b. reduce unemployment. c. reduce output. d. reduce the natural rate of unemployment.
By the study of "scarcity," an economist means how we best utilize our: a. limited resources in order to promote full employment and price stability. b. unlimited desires in order to best use our unlimited resources
c. unlimited resources to best satisfy our unlimited desires. d. limited resources in order to best satisfy our unlimited desires.
Game Emporium offers lower prices to children than to adults. This is an example of: a. the inefficiency of monopoly. b. perfect competition
c. utility maximization. d. price discrimination.
If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain, then the United States will:
A) export both sweaters and machinery to Britain. B) import both sweaters and machinery from Britain. C) export sweaters to Britain and import machinery from Britain. D) import sweaters from Britain and export machinery to Britain.