Which is most likely to be a long-run adjustment for a firm that manufactures cars on an assembly line basis?
A. An increase in the amount of steel that the firm buys
B. A decrease in the number of production managers in the assembly line
C. A change in production to a redesigned and retooled facility
D. An increase in the number of shifts of workers from two to three
C. A change in production to a redesigned and retooled facility
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The market labor supply curve is downward-sloping.
Answer the following statement true (T) or false (F)
In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. B) income rises to Y1 instead of to Y2. C) income rises to Y1 instead of staying at YO3. D) income rises to Y2 instead of to Y1.
US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft. As a result
a. accident rates fell due to less adverse selection b. accident rates fell due to less moral hazard c. accident rates rose due to less adverse selection d. accident rates rose due to less moral hazard
Which of the following correctly describes how we compute inflation using the consumer price index?
a. One would compute (i) the total cost of a fixed set of goods and services in some base year, (ii) the total cost of the same fixed set of goods and services in a future year, and (iii) compute the percentage change between (i) and (ii). b. One would track the price of a familiar consumer good over time, such as tooth paste. Inflation is simply the growth rate in the price of the consumer item. c. One would (i) track the percentage growth rate in the price of a familiar consumer good, such as tooth paste, (ii) track the percentage growth rate in wages, and (iii) subtract (i) from (ii) to get inflation. d. One would compute (i) the marginal cost of a fixed set of goods and services in some base year, (ii) the marginal cost of the same fixed set of goods and services in a future year, and (iii) compute the percentage change between (i) and (ii).