In the long run
A. a firm can vary all inputs, but it cannot change the mix of inputs it uses.
B. a firm can shut down, but it cannot exit the industry.
C. all firms must make economic profits.
D. there are no fixed factors of production.
Answer: D
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One role government can play in addressing market failure is to
A) enforce the rules of exchange. B) facilitate decision making for private goods. C) promote imperfect competition. D) increase economic uncertainty.
Figure 7-8
Of the graphs in Figure 7-8, which diagram is most likely to be the marginal cost?
A. 1 B. 2 C. 3 D. 4
Which of the following is not a characteristic of most less-developed countries?
a. Inadequate human capital. b. Inadequate capital goods. c. High population growth rate. d. Inadequate water supplies. e. High productivity.
Human capital refers to the:
A. skills, experience, and natural talent that determine the productivity of workers. B. amount of people a firm has access to for production. C. production per capita. D. the machinery and tools that labor can use for production.