Which of the following statements accurately describes a commonality between the classical and Keynesian schools of thought?
a. Prolonged unemployment is impossible over the long run.
b. Wages, prices, and interest rates adjust quickly in the short run.
c. In the long run an economy returns naturally to its potential output level.
d. Prolonged recessions are due to wage inflexibility.
c. In the long run an economy returns naturally to its potential output level.
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When accounting profits are positive, economic profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.
Briefly describe what happens when a perfectly competitive firm increases the total quantity it supplies of a good
Which of the following offers an example of economies of scope?
a. When production of economics textbooks, management textbooks, and finance textbooks can be done by a single publishing company at lower average cost than by separate publishing companies that specialize in just one topic. b. The minimum average cost of producing a unit of output is first realized when 600,000 units are produced each month. c. When a firm finds that it is more profitable to contract for certain inputs or functions supplied by others than to produce those inputs or functions itself. d. When the average cost per unit of output falls as the firm increases its scale of production of economic textbooks.
The Age of the great industrial capitalist was
A. the first quarter of the 19th century. B. the second quarter of the 19th century. C. the third quarter of the 19th century. D. the fourth quarter of the 19th century.