In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
You might also like to view...
When will the substitution effect of a wage increase cause a fall in the amount of labor employed?
a. Always. b. When labor is not a regressive factor. c. When labor and capital are substitutes in production. d. When labor and capital are complements in production.
Government spending conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) fiscal policy. B) monetary policy. C) interest-rate policy. D) exchange-rate policy.
What does the cross-price elasticity of demand measure? How is it calculated?
What will be an ideal response?
If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.