The price of labor in the agricultural industry has just increased. For agricultural products, this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.
A
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Over the business cycle, factors such as the quantity of capital, human capital and technology
A) change randomly, sometimes growing, sometimes falling. B) change drastically, fluctuating more than the quantity of labor employed. C) fluctuate about the same amount as the quantity of labor employed. D) grow but do not fluctuate as much as the quantity of labor employed. E) do not grow and are therefore not the source of economic growth.
One reason why economists often use models in their analysis is that
A) a model helps us to understand, explain, and predict economic phenomena in the real world. B) a model accurately pictures every detail of the real world economy. C) a model relates to individual thought processes rather than behavior. D) it is relatively easy to perfectly specify a model.
When voters pay taxes in proportion to the benefits they receive from government projects
What will be an ideal response?
If all factors of production that are available for use under current market conditions are being utilized, then the economy has:
A) economic growth. B) comparative advantage. C) full employment. D) inefficient production.