Identify the difference between the short-run and the long-run
The short run is defined as the length of time during which the decision maker can vary some inputs, although others remain fixed. In the long run all inputs are variable. Inputs are still substitutable in the short run: the firm can change its output level by changing only those inputs that are variable. Long-run substitution is more obvious: the firm can produce a given rate of output using labor intensive methods that use a high ratio of worker time to capital (machinery) services, or it can use the opposite mix, a capital intensive one.
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The interest rate that banks pay for borrowing overnight from other banks is called:
a. bank rate. b. target rate. c. federal funds rate. d. real interest rate. e. prime lending rate.
During 1980 through 2010,
a. the per capita income of high-income industrial countries declined. b. the fastest growing economies in the world were LDCs. c. almost all LDCs grew more rapidly than the high-income industrial economies. d. most of the countries with rapid growth rates during the last two decades were located in South America.
Which of the following helps explain the problem of disappearing political discourse?
A. Moral hazard B. The lemons model C. Statistical discrimination D. Adverse selection
Members of the Board of Governors of the Fed:
A. must leave office when there is a new administration elected. B. are appointed for life, though they can resign at any time. C. serve one non-renewable fourteen-year term. D. can be reappointed after their term expires.