Costs that firms impose on others are known as ______ costs.
a. fixed
b. internal
c. external
d. operating
c. external
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A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Which of the following is a short-run decision for a firm?
A. investing in a new addition to the firm's manufacturing plant B. firing workers C. expanding the firm's distribution network of long-haul freight trucks and smaller delivery trucks D. downsizing the firm's manufacturing plant
The payroll tax is regressive because
A. wages and salaries are a larger percentage of total income for those higher on the income scale. B. the elasticity of labor supply is close to zero. C. most of the tax does not apply to wages and salaries above $118,500. D. wealthy individuals have more deductions from the payroll tax.
A central bank is an institution that
A) pays for government expenditures. B) controls a nation's monetary policy. C) runs a country's stock market. D) determines a nation's fiscal policy.