What factors of production can a firm change in the short run? In the long run?
What will be an ideal response?
In the short run, the firm can change its variable factors of production, such as labor. The firm cannot change its fixed factors of production, such as its capital stock. The factors of production the firm cannot change are called its "plant." In the long run, the firm can change all of its factors of production. Indeed, the long run is defined as the period of time long enough so that the firm can change all of its factors of production.
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Except for recessions, the duration of unemployment for the typical person lasts
A) less than six months. B) six to nine months. C) over nine months. D) over one year. E) over five years.
Suppose that the Fed undertakes an open market purchase of $1 million worth of securities from a bank. If the required reserve ratio is 9%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves?
A) $11.11 million B) $9 million C) $1.09 million D) $90 million
Investment averages about ____ of GDP
a. 1/6 b. 1/8 c. 1/4 d. 1/2
In the provided graph, the equilibrium point in the market is where the S and D curves intersect. At equilibrium, the producer surplus would be represented by the area
A. b + c. B. a + b. C. b. D. b + c + d.