Compare the factors that will cause shifts in the down sloping resource demand and product demand curves
What will be an ideal response?
Any of the factors that cause shifts in the product demand curve (changes in income, tastes, prices of related products, expectations) will also cause a shift in the demand for the resources that are inputs in the production process since the resource demand is derived from the product demand. In addition, the resource demand curve could be shifted by changes in productivity and changes in the prices of substitute or complementary resources.
You might also like to view...
In a situation in which property rights are not well-defined and social costs exceed private costs, government can use all of the following to induce producers to bring private costs into alignment with social costs EXCEPT
A) taxing production. B) coercive limits on production. C) subsidization of production. D) regulation of production.
What is another name for a vertical line that shows the long-run aggregate supply in the aggregate demand and aggregate supply model?
a. Real GDP b. Equilibrium GDP c. Potential GDP d. Long-run aggregate demand
H1: âj
0, where âj is a regression coefficient associated with an explanatory variable, represents a one-sided alternative hypothesis.
Answer the following statement true (T) or false (F)
Basing decisions on marginal cost and marginal benefit means that people should:
A. take no chances. B. weigh the costs and benefits and make the choice that provides the highest net cost. C. weigh the costs and benefits and make the choice that provides the highest net benefit. D. make only Pareto optimal choices.