The marginal cost of extraction of a nonrenewable resource increases with passage of time because:
a. the technology used in extraction depreciates in value.
b. the price of the product that uses this resource decreases.
c. the exchange rate in the international market appreciates.
d. the tragedy of commons problem arises.
e. the resource gradually becomes scarce.
e
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
In the table above, the number of unemployed people is
A) 2,000. B) 3,000. C) 1,000. D) 1,100. E) 11,000.
Suppose the government imposes a price support that is above the equilibrium price. As a result,
A) total revenue increases. B) consumer surplus increases. C) the marginal cost of the last unit produced decreases. D) the government has effectively imposed a price ceiling. E) the subsidy the government pays decreases.
Suppose Q = KaLb, if a + b > 1 the isoquants will be
a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced.