Assume the smart watch industry is a perfectly competitive industry that uses a specialized input. If this industry experiences an increase in demand, we might expect that in the long run:
A. neither input nor output prices will increase.
B. only input prices will increase.
C. both input and output prices will increase.
D. only output prices will increase.
Answer: C
You might also like to view...
The social cost of producing a good that generates negative externalities is the sum of the ________
A) average variable cost and average fixed cost of production B) average total cost and the marginal cost of production C) private cost and external costs of production D) total fixed cost and total variable cost of production
"Net exports" is defined as
A) GDP minus imports. B) exports plus imports. C) GDP minus exports. D) exports minus imports.
Consider an economy made up of 100 people sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is _____
a. 30 b. 60 c. 85 d. 90 e. 70
The Treasury finances government spending by
A) selling securities. B) collecting taxes. C) by collecting tariffs. D) all of these choices are possible.