When an investment project generates output that is valued more highly than the value of the resources required for its production,
What will be an ideal response?
undertaking the project will create wealth.
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A profit maximizing monopolist sets price and output so that it always operates on the elastic portion of its straight-line demand curve when in equilibrium
a. True b. False Indicate whether the statement is true or false
Economics is the study of
What will be an ideal response?
Some nonprice determinants of supply are:
A. prices of related goods, technology, and consumer preferences. B. expectations of sellers and number of buyers in the market. C. consumer preferences, the price of the good, and prices of related goods. D. prices of related goods, technology, prices of inputs, expectations, and the number of sellers.
China's prosperity brings income gap The Asian Development Bank [ADB] reports that China has the largest gap between the rich and the poor in Asia
Ifzal Ali, the ADB's chief economist, claims it is not that the rich are getting richer and the poor are getting poorer, but that the rich are getting richer faster than the poor. Source: Financial Times, August 9, 2007 Explain how the distribution of personal income in China can be getting more unequal even though the poorest 20 percent are getting richer.