Answer the following statement true (T) or false (F)
1) The wants of consumers are expressed in the product market with "dollar votes."
2) Costs can be defined as total payments made to workers, land owners, and capital suppliers
less payments to the entrepreneur for organizing and combining the other resources used to
produce a good.
3) Continued losses in an industry will cause some firms to reduce output or eventually leave the
industry.
4) The guiding function of prices tends to keep resources flowing toward their most highly valued
uses.
1) T
2) F
3) T
4) T
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What is the primary reason exchange rates were overvalued under ISI?
What will be an ideal response?
The price elasticity of demand for labor will depend upon all but the
A) price elasticity of demand for the final product. B) price elasticity of supply for the final product. C) time period being considered. D) availability of substitutes for inputs.
Use the NBER data in Table 8.1 in the textbook on U.S. business cycle turning points to calculate: a) the shortest business cycle from peak to peak; b) the shortest business cycle from trough to trough; c) the longest business cycle from peak to peak; and d) the longest business cycle from trough to trough.
What will be an ideal response?
On a traditional supply and demand diagram,
A. price is measured along the horizontal axis and quantity along the vertical axis. B. price is measured along the vertical axis and quantity along the horizontal axis. C. quantity demanded is measured along the horizontal axis, quantity supplied is measured along the vertical axis, and price is indicated on the contour lines. D. quantity is measured along both axes and price is indicated on the contour lines.