Longitudinal data on income inequality in the United States indicates that:
a. children of poor families stay poor, but children of rich families do not always stay rich
b. children of poor families often escape poverty, but rich families invariably retain their wealth over time.
c. there is substantial movement among income groupings in the United States.
d. the rich are getting richer and the poor are getting poorer.
c
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Fixed costs are those costs that are
A. unchanging through time. B. independent of the amount of output a firm produces in the short run. C. zero if the firm produces no output in the short run. D. dependent of the amount of output a firm produces in the short run.
The pauper labor theory, and the exploitation argument
A) are theoretical weaknesses that limit the applicability of the Ricardian concept of comparative advantage. B) are theoretically irrelevant to the Ricardian model, and do not limit its logical relevance. C) are not relevant because the Ricardian model is based on the labor theory of value. D) are not relevant because the Ricardian model allows for different technologies in different countries. E) invalidate the Ricardian model.
If a new entrant (or an established firm) wants to leave a contestable market,
a. all, or nearly all of, the invested capital values can be recovered. b. another firm will always enter to take its place. c. it must accept large losses in its capital investment, so it is unlikely to exit. d. its leaving will be contested by regulators in the market who seek to prevent exit.
When the economy experiences a permanent supply side shock that shifts the long-run aggregate supply to the right, the short run aggregate supply curve will:
A. begin by shifting left initially, and then be pulled right by the long-run aggregate supply over time. B. gradually shift right until it reaches long-run aggregate supply and the new long-run equilibrium. C. instantly shift left with the long-run aggregate supply to the new long-run equilibrium. D. None of these is true.