In the specific factors model, a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by less then 5%; increase; decrease
B) increase by 5%; remain unchanged; remain unchanged
C) increase by more then 5%; increase; remain unchanged
D) remain constant; increase; increase
E) remain constant; decrease; decrease
A
You might also like to view...
The cross price elasticity of demand between two goods will be positive if
A) the two goods are complements. B) the two goods are substitutes. C) the two goods are luxuries. D) one of the goods is a luxury and the other is a necessity.
A World Bank study suggest a strong link in Africa between governments that __________ special-interest groups and __________ rates of economic growth
a. cater to, high b. cater to, moderate c. cater to, low d. ignore, low e. ignore, moderate
Tax cuts shift aggregate demand
a. right as do increases in government spending. b. right while increases in government spending shift aggregate demand left. c. left as do increases in government spending. d. left while increases in government spending shift aggregate demand right.
The drug maker Wyeth produces the hormone-therapy drug Premarin, which is derived from the urine of pregnant mares. Not even Wyeth knows exactly what chemicals are in it, and the method of making the drug is a trade secret. Barr Laboratories has been trying to make a pill that is close enough to Premarin to be approved by the U.S. Food and Drug Administration as an "equivalent" drug. This story illustrates the importance of:
A. declining long-run cost curves as a way of preserving monopoly. B. economies of scope in cementing a monopoly position. C. barriers to entry in keeping a monopoly position. D. declining demand curves as an essential ingredient in keeping monopoly.