Because many resource prices are set by long-term contracts, in the short run
a. costs will increase by more than product prices when demand increases.
b. costs will decrease when the demand for products increases.
c. costs will increase by less than product prices when demand increases.
d. costs will decrease by more than product prices when demand decreases.
C
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The value of a network
A) is related to how many are in the network. B) is not related to how many are in the network. C) is related to its impact on diminishing marginal returns. D) none of these choices.
Assume that European interest rates fall as a result of decreased deficit spending by the governments of the European Union. We would expect all of the following, except:
a. a depreciation of the euro with respect to the U.S. dollar. b. increased European demand for American government securities. c. a higher level of U.S. imports from Europe. d. higher U.S. net exports to Europe. e. higher French exports to the United States.
When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?
A) productivity B) the price of the firm's product C) the average wage in the country D) the average wage in the industry E) none of the above
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.