Which of the following is a short-run decision for a firm?
A. investing in a new addition to the firm's manufacturing plant
B. firing workers
C. expanding the firm's distribution network of long-haul freight trucks and smaller delivery trucks
D. downsizing the firm's manufacturing plant
Answer: B
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When increased government spending results in decreased consumer or business spending, the government spending is said to be crowding out the consumer and business spending
Indicate whether the statement is true or false
Which of the following is true about the Taylor principle?
A) it explains the link between higher inflation and higher real interest rates B) it is the foundation for an upward sloping MP curve C) it reflects the practice of monetary policy D) all of the above E) none of the above
Demand facing an individual, perfectly competitive firm is
A) perfectly inelastic at the quantity the firm chooses to produce. B) perfectly inelastic at the quantity determined by market forces. C) perfectly elastic at the price the firm chooses to charge. D) perfectly elastic at the price determined by market forces.
Which of the following is true about producer surplus?
a. Producer surplus is how much more it costs sellers than they are paid b. Producer surplus is shown graphically as the area under the demand curve but above the supply curve. c. An increase in the market price due to an increase in demand will increase producer surplus. d. All of the above are true about producer surplus.