In general, when the price of a fixed factor of production increases:
A. the profit-maximizing level of output increases.
B. the profit-maximizing price falls.
C. marginal cost increases.
D. marginal cost is unchanged.
Answer: D
Economics
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Which markets are depicted in the basic circular flow model?
A) the factor market and the bond market B) the stock market and the bond market C) the money market and the foreign exchange market D) the goods market and the stock market E) the goods market and the factor market
Economics
If a nation devotes a larger share of its current production to consumption goods, then
A) it must produce at a point within its PPF. B) its economic growth will slow down. C) some productive factors will become unemployed. D) its PPF will shift inward. E) its PPF will shift outward.
Economics