If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) higher profits will induce expanded production. b) a majority of industries will start running into limits. c) increase in quantity produced won't be large. d) the maximum potential GDP will be exceeded.

If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) higher profits will induce expanded production. b) a majority of industries will start running into limits. c) increase in quantity produced won't be large. d) the maximum potential GDP will be exceeded.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter1: The Art And Science Of Economic Analysis

Section: Chapter Questions

Problem 4.7P

See similar textbooks

Similar questions

The biggest problem of production to be solved is: Deciding how much of a business’s production budget should be invested in lobbying congress for policies favorable to the business. Deciding how best to allocate a business’s limited manpower and resources so as to produce what consumers most want. To create as many jobs as possible. To produce as many goods as possible.
If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) higher profits will induce expanded production. b) a majority of industries will start running into limits. c) increase in quantity produced won&39;t be large. d) the maximum potential GDP will be exceeded.
Identify the word, concept, or expression most closely related to the word, concept, or expression below: 1. Short-run effect of an increased number of Canadians vacationing and shopping at home. Choose one of the following: product prices fall and output rises, product prices fall and output falls, product prices rise and output falls, product prices rise and output rises, prices remain unchanged and output rises, product rises and output remains unchanged 2. Short-run effect of increased government spending on infrastructure. Choose one of the following: product prices fall and output rises, product prices fall and output falls, product prices rise and output falls, product prices rise and output rises, prices remain unchanged and output rises, product rises and output remains unchanged 3. Short-run effect of a large increase in commodity (input) prices for businesses. Choose one of the following: product prices fall and output rises, product prices fall and output falls, product…
How can an economy increase the production of one good without reducing the production of another? Identify at least three factors that contribute to this increase and explain how they contribute to the increase.
Scarcity means what? time and resources spent researching a cure for breast cancer are time and resources that could have been spent researching cures for lymphoma. 25 year olds might be more willing to start a family than 35 year olds. government funding of federal programs equals the amount paid in taxes. all consumers are assumed to have limited financial resources. money flows in a circle.
A certain production possibilities frontier shows production possibilities for two goods: pants and shirts. Which of the following concepts can not be illustrated in this model? Question 39Select one: a. the opportunity cost of shirts in terms of pants b. the effect of economic growth on production possibilities involving pants and shirts c. the flow of dollars between (i) sellers of pants and shirts and (ii) buyers of pants and shirts d. the tradeoff between production of pants and production of shirts
Q.1.1 What is the cause of scarcity in the economy? (a) Limited wants and unlimited resources.(b) Limited wants and limited resources.(c) Unlimited wants and unlimited resources.(d) Unlimited wants and limited resources.Q.1.2 Which one of the following is a microeconomic issue? (a) The rate of economic growth in South Africa.(b) The price of maize in South Africa.(c) The unemployment rate in Zimbabwe.(d) The South African inflation rate.Q.1.3 What are the three major economic flows? (a) Income, spending and saving.(b) Spending, production and saving.(c) Income, saving and investment.(d) Income, spending and production.
Scarcity occurs because of A. the excess of quantity supplied over quantity demanded. B. the limited supply of resources. C. overutilization of labor. D. limited human needs and wants.
A certain production possibilities frontier shows production possibilities for two goods: pants and shirts. Which of the following concepts can not be illustrated in this model? Select one: a. the tradeoff between production of pants and production of shirts b. the effect of economic growth on production possibilities involving pants and shirts c. the flow of dollars between (i) sellers of pants and shirts and (ii) buyers of pants and shirts d. the opportunity cost of shirts in terms of pants
17. is a schedule that shows various amounts of a good or service a seller is willing and able to sell at each possible price during a particular period. A. Production possibilities curve B. Capacity utilization C. Demand D. Supply
Please answer all the following questions True or False 1. a high fertility rate reduces the per capita income be it the gross national income per capita or the gross domestic product per capita 2. urbanization and localized economies lead to resource immobility 3. the most relevant advantage of locating a firm in an industrial district is known spillover 4. centralized urbanization leads to underdeveloped peripheral economies
January 2021, came with hope, as vaccines arrived. The countries started unlocking cities like London, Mumbai, and Beijing started seeing traffic congestion as also crude oil prices started rising. During lockdown in 2020, the prices had come tumbling down, falling to $40 a barrel by May 2020. As the world shuttered businesses, issued stay-at-home mandates, and restricted travel, demand collapsed. The producers faced a glut and could not find space to store the barrels. By the end of 2020, OPEC instituted cuts in production, but this year's unlocking of the world, increased demand. Crude oil prices rebounded, as nations emerged from lockdown. Large increases in income due to economic activity led to a drop in inventories. OPEC (Organisation for Petroleum Exporting Countries) nations had initiated a cut in 2020 and could not immediately raise supplies. They urged non-OPEC members to meet the shortfall. The supply increased but could not keep up in pace with the increasing demand and so…