Over longer periods of time, increases in oil prices provide firms with incentives to explore and recover oil. What does this indicate about the long-run price elasticity of supply for oil?
A) The elasticity coefficient is unstable in the long run because oil supplies may be depleted.
B) The elasticity coefficient approaches 0 in the long run as supplies are depleted.
C) The elasticity coefficient is likely to be higher in the long run than in the short run.
D) The elasticity coefficient is likely to be lower in the long run than in the short run.
C
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Looking at historical evidence for the United States and other countries, which of the following are TRUE?
I. There is a correlation between the growth rate of the quantity theory of money and the growth rate of real GDP. II. There is a correlation between the growth rate of the quantity theory of money and the inflation rate. A) Only I is true. B) Only II is true. C) Both I and II are true. D) Neither I or II is true.
"As the quantity of labor hired increases, the value of marginal product stays constant as long as the wage rate is constant for all workers." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Human capital refers to the accumulated skills and training that workers possess
Indicate whether the statement is true or false
Spending on imports should get _________ GDP, and spending on exports should be __________.
A. subtracted from; included B. included in; included as well C. subtracted from; subtracted as well D. included in; subtracted