Technology can enable producers to economize on:
a. labor
b. capital
c. land
d. any of the above.
d
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Which of the following is not an example of an externality?
a. Drunk drivers raise everyone's auto insurance premiums. b. The price of lumber increases as lumberjacks' wages increase. c. The neighbor's beautiful front yard increases your home value. d. Someone drives a car that emits thick black smoke. e. People who live near a bakery enjoy the smell of freshly baked bread.
What is determined by the intersection of the market supply of labor and the market demand for labor?
a. equilibrium wage b. equilibrium employment level c. both equilibrium wage and equilibrium employment level d. equilibrium marginal revenue product
People tend to hold more money as
A. the price level rises and interest rates rise. B. the price level falls and interest rates fall. C. the price level rises and interest rates fall. D. the price level falls and interest rates rise.
Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. The two policies being considered will result in the same amount of pollution reduction
A. only if the equilibrium price in the pollution permit market is $250. B. never. C. always. D. only if the equilibrium price in the pollution permit market is greater than $250.