Suppose a negative technological change in the production of disease-resistant wheat caused the price of wheat to rise. Holding everything else constant, how would this affect the market for corn (a substitute for wheat)?
A) The supply of corn would decrease and the equilibrium price of corn would increase.
B) The demand for corn would increase and the equilibrium price of corn would increase.
C) The demand for corn would increase and the equilibrium price of corn would decrease.
D) The demand for corn would decrease because consumers could afford to buy less wheat and corn.
B
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The ongoing normal creation and destruction of jobs creates
A) frictional unemployment. B) structural unemployment. C) avoidable unemployment. D) cyclical unemployment. E) destructive unemployment.
The general rule for allocating productive resources efficiently across different production activities of the same product, like the fishing boats in the textbook example, is to choose the allocation for which the:
a. average product of the resource is the same in every activity b. marginal product of the resource is the same in every activity c. total product of the resource is the same in every activity d. average product is equal to the marginal product e. none fo the above