Answer the following statements true (T) or false (F)
1. The prices of resources are an important factor in the determination of money income.
2. The demand for a resource is a derived demand based on the demand for the product it helps to produce.
3.The demand for a resource is a derived demand based on the demand for the product it helps to produce.
4 A firm's demand schedule for a resource is the firm's marginal product schedule for the resource.
5. A competitive firm's marginal revenue product of labor will fall as it employs more labor because of the decrease in the price of labor as more of it is employed.
1. TRUE
2. TRUE
3. FALSE
4.FALSE
5. FALSE
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In the 1990s, the rising value of the U.S. dollar made imported goods cheaper and this shifted the
a. aggregate demand curve outward. b. aggregate supply curve inward. c. aggregate supply curve outward. d. total expenditures curve upward.
An increase in supply will decrease prices most when demand is
A. unit elastic. B. inelastic (but not perfectly inelastic). C. elastic. D. perfectly inelastic.