The industry represented by the graph below must be one where:
A. Resource prices rise when the industry contracts
B. Resource prices fall when the industry expands
C. Resource prices fall when the industry contracts
D. Resource prices are unaffected by the industry's expansion
C. Resource prices fall when the industry contracts
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In 2015, Janice Quinn sells a five-year-old car to Used Car, Inc. for $6,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $6,500. What is the contribution of these transactions to GDP in the year 2015?
A. $6,000 B. $12,500 C. $500 D. $0
Your boss wants to know if you should lay off any workers. You answer that you should lay off workers if the
A) marginal revenue product of labor is greater than the nominal wage rate. B) marginal product of labor is greater than or equal to the real wage rate. C) marginal revenue product of labor is equal to the nominal wage rate. D) marginal product of labor is less than the real wage rate.
The income elasticity of demand for all goods taken together must be
A) zero. B) -1. C) +1. D) between 0 and 1.
A current price below the equilibrium price will result in a surplus.
a. true b. false