Author Question: If the price of a resource increases, other things constant, less of that resource will be hired ... (Read 85 times)

K@ · **on:** Jun 30, 2018

If the price of a resource increases, other things constant, less of that resource will be hired because
a. producers will substitute away from that resource
b. producers fear starting a trend toward higher resource prices
c. the demand curve for the product will shift to the left
d. highly paid resources don't produce as much
e. it makes other resources look expensive as well

Question 2

In order to increase society's total welfarer, a production process that produces a negative externality should be
a. taxed
b. provided by the government
c. ignored
d. subsidized
e. exported