The long run is a period of time
a. during which at least one resource is fixed
b. during which all resources are variable
c. during which all resources are fixed
d. less than one year
e. greater than one year
B
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If public subsidies for education were eliminated, what would you expect as an outcome in the market for educational services?
A) More students would enroll in school. B) The price students pay to attend school would equal the value of an additional unit of education consumed. C) There would be no correlation between the price students pay and the cost of providing the educational services. D) The quality of education would deteriorate.
You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)
a. luxury good. b. inferior good. c. normal good. d. complementary good.
In 2008, Morgan Stanley and Goldman Sachs decided to ______.
a. declare bankruptcy b. sell out to other banks c. become commercial banks d. become investment banks
When an external cost exists that is NOT taken into account in the production of a product,
A. the level of output is too low, and the supply curve should shift to the right to account for the externality. B. the level of output is too high, and the supply curve should shift to the left to account for the externality. C. the price of the product is too high, and production should be expanded to lower the price. D. the level of output is optimal, and there should be no change in the supply curve.