Which statement is false?
A. The most important determinant of the value of an acre of land is its location.
B. The supply of land is virtually fixed.
C. Land is not a resource; only the minerals that are found under it are resources.
D. A firm's demand for land is its marginal revenue product schedule for land.
C. Land is not a resource; only the minerals that are found under it are resources.
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One reason why the price elasticity of supply for DVD players is greater than one is that
A) the cost of producing DVD players is small. B) the storage of DVD players is not possible. C) DVD players can be easily stored. D) the demand for DVD players is fairly large. E) DVD players require relatively advanced technology for their production.
If output is increased beyond the point where total profit is maximized,
A. total profits stay constant. B. total profits will decline. C. marginal profit will be positive. D. MR will be increasing.
Wal-mart
(a) is the railroad of the late nineteenth century. (b) provides an example of how one large business enterprise still can seize market power to restrict entry and exit. (c) holds monopoly power in retail. (d) exists at the expense of consumers.
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Nominal and real exchange rates. b. Real risk-free interest rate. c. Real wage rate. d. Money supply. e. Price level.