When studying the effects of changes in public policy, economists believe that
a. it is important to distinguish between the short run and the long run.
b. the assumptions used in studying those effects should be the same for the short run as for the long run.
c. the short-run effects of those changes are always more beneficial to society than are the long-run effects.
d. the long-run effects of those changes are always more beneficial to society than are the short-run effects.
a
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Perfect competition ________ a fair outcome ________
A) achieves; because both the fair rules and fair results conditions are met B) achieves; because total surplus is maximized C) does not achieve; because entrepreneurs only earn a normal profit D) does not achieve; because firms must be price takers E) may achieve; if average total costs are minimized
Refer to Figure 13-3. Which of the points in the above graph are possible long-run equilibria?
A) B and D B) A and D C) A and C D) A and B
In a closed economy ________
A) investment equals consumption B) investment equals savings C) saving equals consumption D) exports are greater than imports
Which of the following statements would come from someone classified as unemployed?
a. I'm not working because I'm going to Jamaica with my buddy. b. I haven't had a job in a year, and I stopped looking for a job nine months ago. c. I'm a full-time student at the University of Illinois who doesn't have time to work. d. I can't stand my current job as a telemarketer. I used to be a nuclear engineer. e. I'm not working. I had three interviews this week, and I'm trying to find a job.