The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs
A) the greater will be
B) the lower will be
C) that it will not impact
D) The answer cannot be determined.
Answer: A
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Real GDP per person in Westland is $30,000, while real GDP in Eastland is $10,000, Westland's real GDP per person is growing at 3 percent per year and Eastland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Eastland's real GDP per person will rise until it equals Westland's real GDP per person. B. Eastland's real GDP per person will eventually be greater than Westland's. C. Westland's real GDP per person will always be at least $20,000 greater than Eastland's. D. Eastland's real GDP per person will always be exactly $20,000 less than Westland's.
The marginal cost curve of pollution abatement
A) slopes upward because of the law of diminishing product. B) slopes upward because firms will maximize profits. C) slopes downward because of the law of diminishing marginal utility. D) slopes downward because of the law of diminishing returns.
In a bilateral monopoly, the wage rate that is determined in the market
A) is equal to MFC. B) is equal to MRP. C) is indeterminate. D) is the same as in a perfectly competitive market.
Automatic stabilizers are government programs that tend to push the federal budget toward surplus as the real GDP rises and toward deficit as the real GDP falls
a. True b. False Indicate whether the statement is true or false