For the past 15 years the American public has wanted to buy big trucks. The Big Three automakers delivered, investing billions in plants that build gas guzzlers. Now, when customers walk into showrooms, gas mileage is on their mind
Retooling the industry will take years, so in the meantime GM, Ford and Chrysler are tweaking their existing models. They're changing tires, adjusting transmissions and exhaust valves in hopes of getting one or maybe two more miles per gallon. Which of the decisions by the Big Three to gain gas mileage is a short run decision? A) adjusting exhaust valves
B) adjusting transmissions
C) changing tires
D) All of these decisions are short run decisions.
D
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A profit maximizing monopolist sets price and output so that it always operates on the elastic portion of its straight-line demand curve when in equilibrium
a. True b. False Indicate whether the statement is true or false
Price decreases always increase economic efficiency.
Answer the following statement true (T) or false (F)
The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT
A. decreasing the discount rate. B. increasing the reserve requirement. C. selling securities on the open market. D. making banks hold a reserve for all types of deposits.
Which is best considered a supply factor for long-run economic growth?
A. The stock of capital goods. B. Full employment of resources. C. Personal consumption expenditures. D. Government spending.