The opportunity cost of owning and using a firm's capital is defined as the capital's
A) variable cost.
B) fixed cost.
C) economic depreciation.
D) nonpayment depreciation.
E) explicit cost.
C
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The price elasticity of supply measures how
A. responsive quantity supplied is to a change in incomes. B. easily labor and capital can be substituted for one another in the production process. C. responsive the quantity supplied of Y is to changes in the price of X. D. responsive the quantity supplied of X is to changes in the price of X.
A firm uses labor and capital. To tell if the firm is technologically efficient, you
A) do not need to know the cost of labor or the cost of capital. B) need to know the cost of capital but not the cost of labor. C) need to know the cost of labor and the cost of capital. D) need to know the cost of labor but not the cost of capital.
How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
What will be an ideal response?
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.