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Question
If this economy produces more than 20 houses per year, the opportunity cost of a house will ________ because ________.
a. decrease; production will be specialized
b. increase; an input with a higher opportunity cost must be used
c. decrease; inputs will be obtained at lower cost
d. increase; all gains from trade have already been exploited
e. remain the same; Natasha and Jameson produce in constant ratios regardless of level of output
Answer
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Related questions
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b. relatively unresponsive to a change in price.
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e. completely responsive to a change in price.
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Price gouging laws will usually result in ________ the product in the distressed market.
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b. more local business start-ups to supply
c. government setting up an agency to regulate supply of
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The economic entity most likely to engage in price gouging is
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Q:
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
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Q:
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a. Demand for jelly will increase along with the price.
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Q:
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