Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is
A) a decreasing-cost industry.
B) a constant cost industry.
C) an increasing-cost industry.
D) not a competitive industry.
Answer: A
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If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A) Irene has the absolute advantage in the production of chairs. B) Irene has the comparative advantage in the production of tables. C) Greg has the absolute advantage in the production of chairs. D) Greg has the comparative advantage in the production of chairs.
Which of the following statements is FALSE?
A) When it comes to overall productive efficiency, compared to Japan, Germany and the rest of the European Union, the United States lags far behind. B) Sophisticated financial systems have given U.S. productive efficiency a boost. C) The United States' international competitive position has been helped by its long history of widespread entrepreneurship. D) Economic restructuring and investments in information technology have added to productive efficiency in the United States.
We worry that false negatives occur too often relative to false positives due to
a. Most hypotheses being false b. It being appropriate to set a high standard for acceptance of a hypothesis c. Managers having an incentive to make a false negative conclusion because they are harder for superiors to observe d. They are not too common
Many bank failures, ranging from the savings and loan crisis in the U.S. to bank failures in Japan, stem in part from collapsing real estate prices and defaults on real estate loans
Indicate whether the statement is true or false