For many firms, capital is the production input that is typically fixed in the short run. Which of the following firms would face the longest time required to adjust its capital inputs?
A) Firm that makes DVD players.
B) Computer chip fabricator
C) Flat-screen TV manufacturer
D) Nuclear power plant
D
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The right decision about what to produce and who to trade with happens:
A. almost entirely by market decisions automatically. B. when governments publish comparative advantage numbers. C. only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option. D. governments from different countries get together to decide on trade.
U.S. Trade Adjustment Assistance:
a. is not available to workers in manufacturing. b. is not available to workers displaced by NAFTA. c. is not available to workers in service industries. d. expired with the advent of the WTO in 1995.
Briefly explain why payroll taxes are a regressive tax.
What will be an ideal response?
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.