Which of the following best illustrates the concept of "derived demand"?
a. An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories.
b. An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons.
c. An increase in the price of gasoline leads to an increase in the demand for small cars
d. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.
d
Economics
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A singer would willingly perform in a concert for $100,000. If she is paid $500,000 for the concert, she is
A) receiving $500,000 to cover her opportunity cost. B) not being paid her full opportunity cost. C) receiving $400,000 of economic rent. D) certainly being paid more than warranted by the level of demand.
Economics
Examples of transfers-in-kind include
A) tax rebates on both the federal and state levels. B) taxes on alcohol and tobacco. C) food stamps. D) foreign aid.
Economics