In the long run, supply curves tend to be relatively elastic. This is because
a. demand is also elastic in the long run
b. in the short run, fixed costs are fixed
c. in the long run, suppliers can adjust the quantities of all resources used in production
d. in the long run, suppliers can eliminate inefficient resources
e. in the long run, suppliers will enter and exit other industries
C
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In the circular flow model, firms use the money they earn from selling their goods and services to pay for the
a. goods and services they buy on the product market b. resources they buy on the product market c. goods and services they buy on the resource market d. resources they buy on the resource market e. differences between the revenue they earn selling the goods and services and the costs involved in producing them
A union wants to increase its members' wages without reducing employment. Which of the following strategies might achieve that goal?
a. setting a high minimum wage rate for its members b. increasing the number of members in the union c. pushing employers not to allow featherbedding of workers d. training its members to work more productively
A perfectly discriminating monopsonist
A. pays the equilibrium wage to all workers. B. faces an increasing value of the marginal product curve. C. receives zero profit in the long run. D. pays each worker his or her reservation wage. E. disregards minimum wage laws.
Capital controls are most often aimed at slowing or eliminating movements of
A) reserve assets. B) foreign direct investment. C) foreign portfolio investment. D) nonreserve government assets.