Which of the following statements is false?
A) If Mexican restaurant owners provide free chips and salsa to their customers, the quantity demanded of chips and salsa will be greater than if customers had to pay for them.
B) If the price of a good falls, then the demand for its complements will increase.
C) If the price of a good rises, then the price of its complements will rise.
D) If chips and salsa are offered for free to Mexican restaurant customers, then restaurants can charge a higher price for products that are complements to chips and salsa (such as beer).
C
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When will the scale effect of a wage increase cause a fall in the amount of labor employed?
a. Always. b. When labor is not a regressive factor. c. When labor and capital are substitutes in production. d. When labor and capital are complements in production.
Technological advancements and changes in factor proportions shift a producer's comparative advantage
Indicate whether the statement is true or false
If the savings rate of Country A increases from 10% to 20% and technology growth is zero, then the neoclassical model predicts that in the steady state
a. the capital-to-labor ratio will not grow in the long-run but higher than it is now. b. the capital-to-labor ratio will grow 10% faster. c. the growth rate of output will be permanently higher. d. the level of output will be permanently higher. e. a and d.
Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon
a. True b. False Indicate whether the statement is true or false