Fixed costs are associated with:
A. the long run only.
B. both the short run and the long run.
C. highly adjustable inputs such as labor.
D. the short run only.
Answer: D
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The real interest rate is given by:
A) the nominal interest rate adjusted for inflation. B) the nominal interest rate adjusted for changes in exchange rate. C) the nominal interest rate adjusted for income changes. D) the nominal interest rate adjusted for tax rates.
If you are earning $20,000 this year and the CPI is 165, your real income in base year prices is
A) $121.21. B) $12,121.21. C) $20,000. D) $16,500. E) $33,000.
________ are the portion of claims that policyholders must pay for out of their own pockets
A) Dividends B) Tokens C) Coupons D) Deductibles
If a single large firm is able to produce a market’s output less expensively than many small firms is evidence that, for this market, there are
A. increasing returns to scale. B. constant returns to scale. C. decreasing returns to scale. D. regulations in place that limit production costs.