Which of the following statements is true for a given level of output?
A. Long-run average cost will always be greater than or equal to short-run average cost.
B. Long-run average cost and short-run average cost will be equal because the firm will use different input combinations in each period.
C. Long-run average cost will usually be greater than short-run average cost because more output is produced over the long run.
D. Long-run average cost will always be less than or equal to short-run average cost.
D. Long-run average cost will always be less than or equal to short-run average cost.
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Consumer spending ________ and investment spending ________
A) follows a smooth trend; is the most stable component of aggregate expenditure B) is very volatile and subject to fluctuations; follows a smooth trend C) follows a smooth trend; is more volatile and subject to fluctuations D) is very erratic; is also erratic, but less erratic than consumer spending
Which of the following statements is correct?
a. Theory and hypothesis are interchangeable terms for the same thing. b. A hypothesis may result from a tested and confirmed theory. c. A theory may result from a tested and confirmed hypothesis. d. A hypothesis is a theory whose formulation relies on mathematics.
If resource prices are fixed and the product selling price rises, then
a. profits will decrease. b. profits will increase. c. profits will remain constant. d. both profits and output will decrease.
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off and sellers of shoes in that country become better off
a. True b. False Indicate whether the statement is true or false