What are the two components of a firm's total cost in the short run, and what are their definitions?
What will be an ideal response?
The two parts are the total fixed cost (TFC) and the total variable cost (TVC). TFC is the cost that does not vary as output varies. Examples include rent on a building or interest on a business loan. TVC is the cost that varies as output varies. Examples include a firm's payroll for labor or payments for raw materials.
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The outcome of a prisoners' dilemma game with a Nash equilibrium is that ________
A) both players deny B) one player denies and one player confesses C) both players confess D) there is no equilibrium
Historically, Brazil has suffered higher and more variable rates of inflation than Venezuela
You would expect the short-run aggregate supply curve of Brazil to be ________ than that of Venezuela, and the short-run Phillips curve of Brazil to be ________ than that of Venezuela. A) flatter; flatter B) flatter; steeper C) steeper; flatter D) steeper; steeper
Compared to workers in richer countries, workers in developing countries have
a. lower productivity and lower wages. b. higher productivity and higher wages. c. higher productivity but lower wages. d. the same productivity but lower wages.
For China
A) there was a long period of success with the economic results of communism so it was hard to change policies. B) reform of its economic system was rapid, with a quick dismantling of most of the controls exercised by the state and party over the economic system, but not the political system. C) economic reforms were intended to create more wealth to distribute, not do undo the communist party. D) there are no longer state owned enterprises.