What is the relationship between the long-run industry supply curve and the short-run supply curve in a perfectly competitive market?
What will be an ideal response?
The long-run industry supply curve evolves from the short-run supply curve. As new firms enter, the short-run supply curve shifts toward its long-run position. Also, as short-run fixed cost commitments become variable, the short-run cost curves become the long-run cost curve.
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Explain why some researchers conclude that Americans are becoming more obese because of the existence of fast-food restaurants. If fast-food restaurants have been around for over 50 years why is the trend toward obesity only a recent one? Explain
What will be an ideal response?
The two major types of financial systems are the __________-oriented systems
A) federal- and local B) banking- and markets C) securities- and equities D) contributor- and stockholder
In destination countries, as immigration occurs and more labor is employed, in the short run, wages fall and the marginal products of land and capital (fixed resources):
a. are unaffected. b. both rise. c. both fall. d. rise for one and fall for the other.
Central banks in most developing countries:
A. recognize the link between money creation and inflation but often have no other means of financing government expenditures. B. recognize the link between money creation and inflation but don't care about inflation. C. do not recognize the link between money creation and inflation. D. recognize the link between money creation and inflation and exploit this link to reduce their budget deficit.