The short-run can be described as:
(a) Less than one year.
(b) Period of time over which at least one factor of production is fixed.
(c) Period of time over which all factors of production are variable.
(d) Either one year or one month dependent upon the industry.
Answer: (b) Period of time over which at least one factor of production is fixed.
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In order for a price ceiling to "bind," it:
A. must be set above the equilibrium price, and will likely cause a shortage. B. must be set below the equilibrium price, and will likely cause a shortage. C. must be set above the equilibrium price, and will likely cause a surplus. D. must be set below the equilibrium price, and will likely cause a surplus.
A positive economic statement:
a. contains personal and social value judgments. b. is always a mathematical expression. c. should never be used by an economist. d. is proper provided the advocator is clear the position rests on personal assessment. e. is an unbiased report of the facts of the economy.
Comparative advantage is illustrated by the slopes of production possibilities frontiers
a. True b. False Indicate whether the statement is true or false
Suppose Frank likes to snack on sugary candy. Frank knows that it's bad for his teeth to eat sugary candy, but he doesn't care. Frank's snacking habits have no impact on anyone other than Frank. In this case, Frank's consumption of sugary candy generates:
A. a positive externality. B. a negative externality. C. neither a positive nor a negative externality. D. both a positive and a negative externality.