If a factor of production comes to have more and more alternative uses, its supply curve to any one use
a. remains unchanged.
b. becomes more inelastic.
c. becomes more elastic.
d. may move in any direction.
c
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Which of the following is an example of the snob effect?
A) The fewer consumers that buy the operating system, the fewer the applications that will be available. B) The more people that buy a luxury watch, the less value consumers put on the watch. C) The fewer ATMs available in the city, the fewer consumers want to join the network. D) None of the above.
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true concerning production possibilities curves in both countries?
a. The slopes of the countries' production possibilities frontiers cannot be determined unless the number of workers in each country is known. b. The countries' production possibilities frontiers have the usual bowed-out shape. c. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to 1/100. d. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is steeper than Denmark's. e. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to negative 1/100.
There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:
a. tastes. b. income levels. c. the price of other goods. d. the number of buyers. e. expectations.
The market equilibrium quantity:
A. is sometimes the socially optimal quantity. B. maximizes total economic surplus. C. is the socially optimal quantity. D. is not the socially optimal quantity.