There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?
A) The equilibrium price will rise because the supply curve shifts rightward.
B) The equilibrium price falls because the supply curve shifts leftward.
C) The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known.
D) The demand curve shifts rightward and the supply curve does not shift.
C
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Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Far over factory Very Far?
A) $40 B) $100 C) $150 D) -$150
The prevalent welfare policy is to
A. provide vocational training for welfare recipients, so that they can be self-supporting. B. provide government and private sector employment for those leaving the welfare rolls. C. to basically force welfare recipients to leave the welfare rolls. D. to allow welfare recipients to continue receiving benefits as long as there are children under six years of age in the family.
If two products satisfy a consumer equally, the consumer will choose the product
a. with the lower marginal utility b. with the higher marginal utility c. with the lower price d. with the higher price
Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run
A) partial crowding out; partial crowding out B) partial crowding out; complete crowding out C) complete crowding out; complete crowding out D) complete crowding out; partial crowding out