Concerns about running out of oil are legitimate because the global oil supply curve has been shifting to the left for several decades.
Answer the following statement true (T) or false (F)
False
Both the global demand curve for oil and the global supply curve for oil continue to shift to the right over time. The main danger is not that we will run out of oil but that oil prices may rise suddenly.
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________ is the change in market value of capital over a given period
A) Accounting depreciation B) Implicit rental rate C) Economic depreciation D) Accounting implicit rental cost
The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the loss in social welfare will equal
A) b + c + f + g. B) f + g. C) b + f. D) c + g.
Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:
A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.
Assume that a perfectly competitive firm faces a fixed wage rate of $4 and a constant per-unit cost of capital of $2. If the marginal product of labor and capital are 16 and 6, respectively, then to maximize profits the firm should
A) use relatively more labor. B) use relatively less labor. C) increase all inputs proportionately. D) decrease all inputs proportionately.