An increase in Abigail's income decreases her demand for used cars. For her, used cars are
A) a normal good.
B) an inferior good.
C) a complement to any good.
D) a substitute good.
B
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A firm's demand for labor curve
A) is the same as its value of marginal product of labor curve. B) shows how many jobs the firm demands at different wage rates. C) shifts rightward when the price of the firm's output falls. D) None of the above answers are correct.
Comparative advantage identifies the good for which the producer’s absolute advantage is relatively larger, or where the producer’s absolute _____________ disadvantage is relatively smaller.
a. competitive b. profit c. productivity d. trade
A pollution tax encourages firms to develop more efficient abatement technology.
A pollution tax encourages firms to develop more efficient abatement technology.
Refer to the graph above. If the price increases from P1 to P2, then the gain in total revenue is areas:
A. C + F + H and the loss in total revenue is area J. B. E + F + G and the loss in total revenue is area J. C. B + E and the loss in total revenue is areas H + I + J. D. A + B + C and the loss in total revenue is areas G + I + J.