Explain why a decrease in an input price causes less of an increase in the quantity demanded of the factor if we assumed that product price remained constant
What will be an ideal response?
The input price decrease will lead to additional output that will lower the output price. As the market price declines each firm reduces its output. The total demand for the input will not be as great as when the output market price remains constant.
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Which of the following statements about the natural rate of unemployment is correct?
A) Currently, most economists think that the natural rate is between 5% and 6%. B) Currently, most economists believe the natural rate is zero. C) When unemployment is at its natural rate, then only frictional unemployment remains. D) When unemployment is at its natural rate, then only structural unemployment remains.
Which of the following provides an important source for data on colonial wealth?
a. census records b. newspapers c. records of charitable contributions d. probate records