The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to
a. raise the world price of gold to pay for the new machinery.
b. lower the world price of gold because any amount can now be produced more cheaply.
c. raise the world price of gold because miners' wages must double as their productivity doubles.
d. lower the world price of gold only if new mining companies are not allowed to enter the industry.
b
You might also like to view...
Fiscal policy includes all of the following EXCEPT
A) policies that influence the rate of growth of the quantity of money in circulation. B) changing taxes. C) changing government spending. D) policies that influence aggregate demand.
If your planned consumption expenditure is $600 per month and your disposable income is $500 per month, your
A) induced consumption is $600. B) saving is $100 per month. C) dissaving is $100 per month. D) autonomous consumption is -$100 per month. E) autonomous consumption must be zero per month.
A perfectly competitive furniture-rental firm in Phoenix incurs an economic loss if the average total cost of each rental is
A) greater than the marginal revenue of each rental. B) less than the marginal revenue of each rental. C) equal to the marginal revenue of each rental. D) equal to the price of each rental. E) greater than the average variable cost of each rental.
All of the following statements apply to a purely competitive market in the long run, except:
A. In the long run, all inputs are variable in quantity B. Firms can expand their plant capacities in the long run C. Total fixed costs remain constant even when output expands in the long run D. Firms may enter or leave the industry in the long run