Assuming that resources are specialized, the opportunity cost of an item increases as production of it rises. Therefore, we expect that firms will produce more if
a. the price increases.
b. the price decreases.
c. the opportunity cost is greater than the price.
d. government asks firms to produce more.
e. the income of buyers increases.
a
You might also like to view...
Exports as a percentage of global GDPs have declined since 1980
Indicate whether the statement is true or false
Commodity money cannot be used as a unit of account
a. True b. False Indicate whether the statement is true or false
When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:
A. good will be undersupplied. B. not a socially desirable good. C. free rider problem does not exist. D. good is easily excludable.
Which of the following represents how real GDP is calculated?
A. nominal GDP multiplied by the GDP deflator B. nominal GDP divided by the GDP deflator C. nominal GDP divided by the population D. nominal GDP divided by the PPI, the producer price index