Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________
A) 2 movies; 2 cuckoo clocks B) 2.5 movies; 0.4 cuckoo clocks C) 0.4 cuckoo clocks; 0.5 cuckoo clocks D) 2.5 cuckoo clocks; 2 cuckoo clocks
By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics. B. microeconomics and macroeconomics. C. reservation price and opportunity cost. D. marginal benefit and marginal cost.
All of the following are determinants of money demand except
A) the cost of transferring funds from interest earning assets to checking accounts. B) expectations about the future price level. C) the money supply. D) Real GDP.
Doctors in private health care clinics provide better care than those in public clinics because:
A. they are better trained. B. their fixed salary is generally higher than the fixed salaries of public clinic doctors. C. they have more incentive to practice good medicine. D. their facilities are generally much more updated than public facilities.