Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the
A. output effect outweighed the substitution effect.
B. the substitution effect outweighed the output effect.
C. the substitution effect and the output effect canceled each other out.
D. there is no way to determine the relative weights of the substitution effect and the output effect.
A. output effect outweighed the substitution effect.
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If an indifference curve is a straight line it will not show which of the following?
A) any marginal rate of substitution B) diminishing marginal rate of substitution C) combinations of goods among which a consumer is indifferent D) None of the above answers is correct.
If Congress and the president pursue an expansionary fiscal policy at the same time as the Federal Reserve pursues an expansionary monetary policy, how might the expansionary monetary policy affect the extent of crowding out in the short run?
What will be an ideal response?
A resource price taker's resource demand curve is
a. horizontal b. the same as its marginal resource cost curve c. the same as its marginal revenue product curve d. the same as its marginal product curve e. the same as its average variable cost curve
The monopolist is ________.
a. a perfect competitor and has a downward sloping demand curve b. an imperfect competitor and has a horizontal demand curve c. an imperfect competitor and has a downward sloping demand curve d. a perfect competitor and has a horizontal demand curve