Which of the following statements about a nonrenewable natural resource market is incorrect?

A. The demand for the resource is determined by its value of marginal product.

B. The supply of the resource is perfectly elastic at the market price.

C. The price of the resource is expected to rise over time at a rate equal to the interest rate.

D. The supply of the resource is perfectly inelastic.

Which of the following statements about a nonrenewable natural resource market is incorrect? A. The demand for the resource is determined by its value of marginal product. B. The supply of the resource is perfectly elastic at the market price. C. The price of the resource is expected to rise over time at a rate equal to the interest rate. D. The supply of the resource is perfectly inelastic at the proven reserves.

An individual’s supply of labor curve is ________.

A. horizontal at the market wage rate

B. upward sloping as the wage rate rises

C. upward sloping at low wage rates but becomes downward sloping at high wage rates

D. vertical at the standard number of hours a person works per day

A firm’s demand for labor is determined by ________. A. the market wage rate B. the price of the good that the firm produces and the wage rate it pays C. the marginal product of labor and the market wage rate D. the price of the good that the firm produces and the marginal product of labor

To maximize profit, a firm ________.

A. uses the quantity of land at which the rental rate equals the value of marginal product of land

B. balances the rental rate of capital against the wage rate of labor

C. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital

D. uses the quantity of capital at which the suppliers’ expected profit equals the value of marginal product of capital

An individual’s supply of labor curve is ________. A. horizontal at the market wage rate B. upward sloping as the wage rate rises C. upward sloping at low wage rates but becomes downward sloping at high wage rates D. vertical at the standard number of hours a person works per day

In markets, prices move toward equilibrium because of:

a. the actions of buyers and sellers.

b. government regulations placed on market participants.

c. increased competition among sellers.

d. buyers' ability to affect market outcomes.

What are the two methods commonly used to estimate uncollectible accounts expense?

Tom will maximize his total utility if he buys the quantities of pasta and milk at which ________. A. the marginal utility from pasta equals the marginal utility from milk B. he spends all of his budget and marginal utility from each good is equal C. the marginal utility from the more expensive good is less than the marginal utility from the cheaper good D. he spends all his budget and the marginal utility per dollar from pasta and milk are equal

In the circular flow model, consumers sell resources to and buy products from?

In the circular flow model, the market economy creates?

The circular flow model shows the flow of?

The emergence of MP3 (or iPod) technology is an example of creative destruction because

A. it has replaced compact discs as a technology used for distributing music in the market.

B. the firms that produced compact discs now produce DVDs.

C. the MP3 (iPod) industry is becoming more efficient.

D. it is less expensive than compact discs for the storage and transfer

Which two markets are shown by the circular flow model?