When production generates a negative externality, the true cost of production is the
A) public cost of production. B) private cost of production.
C) average cost of production. D) social cost of production.
D
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If a union is unable to increase the demand for its workers, then success at raising the wage rate paid its members means that
A) all union members receive a higher wage. B) some union members will lose their jobs. C) more union members will be hired. D) the union will push for a decrease in the minimum wage.
In the circular flow diagram, firms get their ability to pay for the costs of production from the:
A. Revenues they receive for their products B. Resources they acquire in the resource markets C. Incomes they earn for their resources D. Goods and services they get in the product markets
Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product
How can the long-run equilibrium level of real Gross Domestic Product (GDP) increase without the price level changing?
What will be an ideal response?