Explain the difference between fixed costs in the short run and fixed costs in the long run
What will be an ideal response?
In the short run fixed costs are sunk; in the long run, fixed costs are avoidable.
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A central bank accepts deposits from
A) the federal government and commercial banks. B) commercial banks and private businesses. C) private businesses and individuals. D) individuals, private businesses, commercial banks, and the federal government.
In much of Europe, the legal age to obtain a driver's license is 18. If the legal driving age in the United States was changed to 18, how would this affect the market for new automobiles? The market for automobile insurance?
What will be an ideal response?
When a group of people stand to gain from an action that is not rational for any of the members to undertake individually, it is referred to as a:
A. free-rider problem. B. collective-action problem. C. moral hazard problem. D. societal-wellbeing problem.
Li is delivering a business presentation. Which of the following is evidence she could present in support of the efficiency wage model?
a. “Our new on-the-job training program increased productivity by 28 percent.” b. “We pay above the minimum wage because we care about our employees.” c. “Increasing wages by just $0.75 per hour translates to a productivity increase of 12 percent.” d. “Our new initiative to hire high-performing college graduates has increased productivity threefold.”