A fall in the price of the final product produced by a firm will cause
A. a reduction in demand for an input used to produce the final product.
B. a reduction in the supply of an input used to produce the final product.
C. a movement down the demand curve for an input used to produce the final product.
D. a decline in the price of an input used to produce the good.
Answer: A
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Which of the following statements is positive?
A. Large budget surpluses should be avoided. B. A tax cut that benefits high-income households is acceptable. C. Higher taxes are needed to support education. D. Tax increases tend to discourage saving.
In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers
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An employee who retains earned pension benefits after leaving a job has a pension plan that is
A) whole life. B) guaranteed. C) vested. D) funded.
In the figure, obtaining more books by giving up some DVDs is called a ___________; whereas losing two books in order to gain 1 DVD is referred to as ________ cost.
a. trade-off; a production b. opportunity; trade-off c. budget; a production d. trade-off; an opportunity