The role of the costs of capital is influenced by the degree to which firms can substitute capital for other inputs of production known as relative prices
Indicate whether the statement is true or false
TRUE
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A cost-saving innovation in a perfectly competitive industry will lead to:
A. economic profits for a few firms for a short time. B. economic profits for new firms. C. entry by new firms. D. a leftward shift of the industry supply curve.
If firms and workers have rational expectations, including knowledge of the policy being used by the Federal Reserve, the short-run Phillips curve will be
A) vertical. B) flatter in the long run than it is in the short run. C) negatively sloped. D) positively sloped.
Payroll taxes are used to collect revenue for the Social Security program
a. True b. False Indicate whether the statement is true or false
In a certain market there are many buyers and many sellers. It is easy to distinguish the product sold by one firm from the products sold by other firms. Is the market competitive?