Wars, new inventions, harvest failures, and changes in government policy are examples of
A. the business cycle.
B. economic models.
C. opportunity costs.
D. shocks.
Answer: D
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Flexible exchange rates are determined by
A. the government of the importing country. B. the IMF. C. the forces of supply and demand. D. the government of the exporting country.
Two perfectly competitive firms, Firm A and Firm B, both face random demand and have the same expected marginal revenue, as illustrated in the figure below. For which firm would a forecast of demand be more valuable?
A) Firm A
B) Firm B
C) The value for each firm is the same because the high demand, low demand, and expected marginal revenue are the same.
D) A forecast is more valuable for Firm A if the demand will be high and more valuable for Firm B if the demand will be low.
According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
a. decreasing returns and declining average and marginal costs b. increasing returns and declining average and marginal costs c. increasing returns and increasing average and marginal costs d. decreasing returns and increasing average and marginal costs e. none of the above
What are the three functions that banks perform as financial intermediaries?
What will be an ideal response?