In terms of innovation and growth, the U.S. economic system has far exceeded the achievements of any other type of economy, even in ancient history
a. True
b. False
Indicate whether the statement is true or false
True
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Marginal cost can be expressed as the ration of the price of labor and the Marginal Product of Labor
a. only when labor is held constant. b. only when labor is the only variable input. c. wether labor is held constant or not. d. never.
Constantine purchased 100 shares of IBM stock several years ago for $150 per share. The price of these shares has fallen to $55 per share. Constantine's investment strategy is "buy low, sell high"
Therefore, he will not sell his IBM stock until the price rises above $150 per share. If he sells at a price lower than $150 per share he will have "bought high and sold low." Constantine's decision: A) is correct and shows a solid command of the nature of opportunity cost. B) is incorrect because the original price paid for the shares is a sunk cost and should have no bearing on whether the shares should be held or sold. C) is incorrect because when the price of a stock falls, the law of demand states that he should buy more shares. D) is incorrect because it treats the price of the shares as an explicit cost.
If the economy is suffering a recession, inventories are probably falling.
Answer the following statement true (T) or false (F)
The natural rate of unemployment:
A. occurs at the economy's potential level of output. B. is zero. C. will cause a steady rise in the price level. D. All of these statements are true.