A change in demand for a resource can be caused by
a. proportion of economic rent in the total earnings of the resource
b. opportunity cost of the resource
c. price of the resource
d. a change in the number of firms producing the final product
e. ease with which resources can be put to alternative uses
D
You might also like to view...
Suppose the country that pegs its currency has an overvalued real exchange rate and that output is currently above the natural level of output. Which of the following will occur as the economy adjusts to this situation?
A) P will decrease over time until Y = Yn. B) A reduction in the pegged value of the domestic currency will cause a leftward shift of the AD curve. C) Net exports will increase as the economy adjusts to this situation. D) Domestic goods will become less competitive as the economy adjusts by itself. E) none of the above
Your purchase of a Gucci purse made in Italy would be classified as:
a. both c and d b. an investment good. c. a durable good. d. an import. e. an export.