Firms that charge a price for their output in excess of marginal cost in the short run
A. cannot find buyers for their output.
B. will suffer huge losses.
C. are charging a markup.
D. are not maximizing profits.
Answer: C
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"The short-run Phillips curve is vertical at the natural unemployment rate." Is the previous statement correct or incorrect?
What will be an ideal response?
Thomas Malthus's predictions turned out to be wrong due to
a. technological advances such as those during the Industrial Revolution. b. smaller populations now than in the time of Malthus. c. the effects of brain-drain. d. unlimited natural resources.
If price and total revenue vary in opposite directions, demand is:
A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.
According to Robert Solow, the production function should be written as:
A. Y = F(K, L). B. Y = F(K, L, A). C. Y = F(K, A). D. Y = F(A, L).