Suppose that the price of computer chips increases by 20 percent during the early stages of an economic recovery. Intel, a chip manufacturer, increases its payroll by 1,000 workers. Intel's hiring of new workers is best described as a
a. long-run adjustment to the price change
b. complete adjustment to the price change
c. market-day adjustment to the price change
d. short-run adjustment to the price change
e. shift to the left in Intel's supply curve for computer chips
d. short-run adjustment to the price change
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A time-series graph showing total production in Japan from 1960 to 2010 shows a positive trend. It is the case that total production
A) fell every year between 1960 and 2010. B) rose every year between 1960 and 2010. C) was lower in 2010 than in 1960. D) was higher in 2010 than in 1960.
Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
A) More close substitutes will appear in the market until economic profits are zero. B) The firms that dropped out of the market will reenter once the level of economic losses is zero. C) Firms will continue to exit the market until economic losses are equal to zero. D) The demand functions of all the firms remaining in the market will become relatively more elastic.
A contract requiring payment of an annual premium in exchange for the payment of a future stream of payments beginning at a specified age and continuing until death is
A) whole life insurance. B) an annuity. C) term life insurance. D) variable life insurance. E) universal life insurance.
A change in which of the following variables would affect the cash flow for a firm?
A) changes in the nominal interest rate B) expected future profit C) changes in the real interest rate D) changes in expected inflation E) none of the above