Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market.
b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource.
c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price.
d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.
c
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Endogenous variables tend to be less volatile than exogenous ones
Indicate whether the statement is true or false
The market interest rate
a. represents the opportunity cost of investing with borrowed funds b. has no impact on the firm's investment decision if the firm uses borrowed funds c. represents the opportunity cost of investing with savings d. has no impact on the firm's investment decision if the firm uses savings e. represents the opportunity cost of investing with either borrowed funds or savings
"When one basketball team spends a large sum of money acquiring better players, it is better off. If all teams do the same thing, all of them are better off." These statements demonstrate: a. the fallacy of composition
b. confusing association with causation. c. a misunderstanding of the direction of causality. d. the ceteris paribus condition.
If a commercial bank has assets valued at $200 million and a net worth of $20 million, what is the value of the bank's liabilities?
a. There is not enough information to determine. b. $20 million c. $220 million d. $180 million e. $200 million