If demand for farm crops is inelastic, a good harvest will cause farm revenues to:
A. Increase because of the increase in the quantity that farmers can sell
B. Increase because of a downward movement along the supply curve, encouraging an increase in demand
C. Decrease because of a percentage fall in price greater than the percentage increase in quantity sold
D. Remain unchanged, because the increase in quantity that can be sold will be matched by an equal decrease in price
C. Decrease because of a percentage fall in price greater than the percentage increase in quantity sold
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Table 7-6 Number of ovens 2 2 2 2 2 2 2 2 Labor hours used 1 2 3 4 5 6 7 8 Loaves of bread produced 20 34 55 70 82 91 94 92 Table 7-6 shows a baker’s daily production relationship for bread. Diminishing returns to labor begin when the baker goes from
A. one hour of labor to two hours of labor. B. three hours of labor to four hours of labor. C. six hours of labor to seven hours of labor. D. seven hours of labor to eight hours of labor.
An aggregate production function shows the relationship between
a. the quantity of inputs used in production and the quantity of output. b. gross domestic product and national income. c. workers as inputs and consumers as buyers. d. production and spending. e. none of the above.
"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly.". This statement
a. represents an unconventional view of the production process. b. is an assertion that capital is subject to increasing returns. c. is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. d. All of the above are correct.
Interest is the payment for the use of funds used to produce capital.
Answer the following statement true (T) or false (F)