Inputs that can be increased or decreased in the short run are called
a. fixed inputs
b. variable inputs
c. economic inputs
d. accounting inputs
e. normal inputs
B
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TheWall Street Journalreports that “hard times aid poultry companies as people eat cheaper fowl.” In the language of economists, this means
A. chicken is an inferior good. B. chicken has a negative substitution effect. C. chicken has a positive substitution effect. D. people’s tastes change during recessions. E. chicken has a positive income effect.
In a closed economy,
A) I = Y + C + G. B) I = Y - C - G. C) I = Y - C + G. D) I = Y + C - G.
Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases b. decreases c. remains unchanged because the demand curve didn't change d. remains unchanged because the quantity demanded remains unchanged e. decreases only if price elasticity of demand is greater than one
In the short run, a firm that finds itself earning a loss should compare the market price to which cost in order to determine how to minimize its losses?
A. Marginal costs B. Fixed costs C. Average total costs D. Average variable costs