When a firm adopts new technology, generally its
A) cost curves shift upward.
B) cost curves shift downward.
C) cost curves are unaffected.
D) supply curve shifts leftward.
E) production permanently decreases.
B
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A situation in which the government cannot implement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known
A. government tax problem. B. time inconsistency of optimal policy. C. the double-counting game. D. Wagner's Law.
Charles Murray points out that
A. despite substantial increases in the money that the federal government spent on antipoverty programs between 1968 and 1980, the poverty rate remained exactly the same. B. although federal spending on antipoverty programs fell substantially between 1968 and 1980, the poverty rate remained exactly the same. C. the only way to substantially reduce the welfare rolls is to enroll all the poor in job training programs that lead to well-paying jobs. D. despite the rising number of poor people in recent years, the federal antipoverty programs have been successful.
Built-in stabilizers:
A. increase the government's deficit during a recession. B. reduce the size of the multiplier. C. intensify the business cycle. D. are a part of discretionary fiscal policy.
Which of the following is TRUE for a firm in the long run?
A. Variable costs will initially increase and then decrease. B. All costs are variable costs. C. The law of diminishing marginal product holds. D. Variable costs will equal marginal cost at all output levels.