A change in a nonprice factor of supply will cause:
A. a movement along the supply curve.
B. a shift of the supply curve.
C. the supply curve to rotate inward.
D. the supply curve to rotate outward.
B. a shift of the supply curve.
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For years, economists believed that market structure explained the ability of some firms to earn economic profits
For example, firms in industries with little competition and high barriers to entry would earn higher profits than firms in competitive industries with low entry barriers. Which of the following has caused economists to question this explanation and seek other explanations for why firms are profitable? A) In recent years, new technologies have increased the potential entry of new firms in industries with high entry barriers. B) Studies have shown that, on average, firms in competitive industries earn higher profit rates than firms in industries with little competition. C) The market structure explanation fails to explain how firms in the same industry can have very different levels of profit. D) Studies have shown that firms in industries that have little competition and high entry barriers are not very profitable. Economists conclude from this that some competition is necessary in order to force firms to lower their costs and develop products that satisfy new consumer demands.
A nation's technological gains have increased labor productivity and, as a result, the average number of hours worked each week has been falling. How do Gross Domestic Product (GDP) calculations account for this shortening of the average workweek?
A) Real Gross Domestic Product (GDP) does not factor in an increase in leisure time but per capita real Gross Domestic Product (GDP) does. B) Neither real Gross Domestic Product (GDP) nor per capita real Gross Domestic Product (GDP) includes the increase in leisure time that results, so the nation's actual economic growth will be overstated. C) Gains in leisure time are dollar-valued and included in real per capita Gross Domestic Product (GDP) gains. D) Gains in leisure time are not included in Gross Domestic Product (GDP), so any increase in real per capita Gross Domestic Product (GDP) will understate the nation's actual economic growth.
The law of increasing costs indicates that the opportunity cost of producing a good:
a. is proportional to the production of the good. b. is constant to the production of the good. c. increases as more of the good is produced. d. decreases as more of the good is produced. e. increases as less of the good is produced.
Based on the graph for the Gini Coefficient, a point where the x and y coefficients are equal would represent ______.
a. total income inequality
b. perfect income equality
c. moderate income inequality
d. moderate income equality