Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.
A. equal to what; will not
B. less than; will
C. more than; will
D. more than; will not
Answer: C
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Explain the Coase theorem. In order for the Coase theorem to be applicable, explain which three conditions must be satisfied. Give an example to show how the Coase theorem can be applied
What will be an ideal response?
Refer to Figure 26-4. In the figure above, a movement from point A to point B would be caused by
A) a decrease in real GDP. B) an increase in the interest rate. C) a decrease in the price level. D) an increase in the price level.
If the short run elasticity of supply for a product is 0.8, in the long run elasticity, supply: a. Is inelastic
b. Is unit elastic. c. Is inelastic. d. Any of the above could be true of the product's long run elasticity of supply.
The quantity theory of money implies that:
A) inflation is equal to the gap between the growth rate of money supply and the current real interest rates. B) inflation is equal to the gap between the growth rate of money supply and the growth rate of nominal GDP. C) inflation is equal to the gap between the growth rate of money supply and the current nominal interest rates. D) inflation is equal to the gap between the growth rate of money supply and the growth rate of real GDP.