Increases in a country's endowments of factors of production increase current output but do not contribute to long-run economic growth.
Answer the following statement true (T) or false (F)
False
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The upward slope of the supply curve reflects the
A. law of diminishing marginal utility. B. principle of specialization in production. C. fact that price and quantity supplied are inversely related. D. law of supply.
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?
A) $100 B) $20 C) $30 D) $125
Poverty can be eliminated without full employment
Indicate whether the statement is true or false
Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated by diesel fuel vehicles. The effect of the regulation is estimated to increase the equilibrium price of a gallon of diesel fuel by 10 cents. Assuming that the supply of diesel fuel has a positive slope and demand has a negative slope, one can infer that the EPA determined that:
A. the external cost of using diesel fuel is greater than 10 cents. B. the external cost of using diesel fuel is less than 10 cents. C. the external benefit of using diesel fuel is less than 10 cents. D. the external cost of using diesel fuel is equal to 10 cents.