How does increasing wealth raise the cost of doing everything? By
A) bidding up the prices of labor-saving devices.
B) increasing the time required to earn and manage the wealth.
C) increasing the value of available alternatives.
D) raising the cost of hiring servants.
E) raising the rate of inflation.
C
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If the physical plant for a corporation is considered to be a fixed input, then
a. it is held constant in the long run b. it can be changed in the long run c. labor must be a variable input d. technology must be changing e. the firm will lose money in the short run, except under perfect competition
The marginal revenue product curve is the
a. same as the supply of labor curve b. price of the good in a competitive market c. marginal physical product curve multiplied by the price of the good d. change in the firm's output generated by the employment of an additional worker e. change in total cost that results from employing an additional worker
The profit-maximizing rate of output for a firm in a perfectly competitive market is found where:
a. total revenue equals total cost. b. price equals average total cost. c. price equals marginal cost. d. marginal revenue equals price.
If the population and labor base of Laurent’s country increases by 2 percent every year, how will this affect the production possibilities curve?
a. The curve will be rendered obsolete.
b. The curve will be shifted outward.
c. The curve will be shifted downward.
d. The curve will be unaffected.