A technological innovation that reduces a firm's cost of producing additional units of output will lead to:
A. an increase in the quantity supplied by the firm, but no change in the firm's supply.
B. a decrease in the firm's supply.
C. an increase in the firm's supply.
D. a decrease in the quantity supplied by the firm, but no change in the firm's supply.
Answer: C
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Which of the following is a limitation of using arithmetic averages to calculate growth rates?
A) Arithmetic averages do not capture the exponential nature of growth and thus are not apt for long-run prediction. B) Arithmetic averages cannot be used in case of negative growth. C) Arithmetic averages are difficult to calculate. D) The calculation of growth using arithmetic averages requires more data than other methods.
An example of a good that can be used for money that has intrinsic value is:
A. cigarettes. B. fish. C. gold. D. All of these have intrinsic value.
The President of which of the following district banks of the Fed is perpetually present on the Federal Open Market Committee?
a. The New York Fed b. The Seattle Fed c. The Boston Fed d. The Chicago Fed e. The Atlanta Fed
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. The firm has 100 units of capital. If the firm uses an efficient production method, how much output does it produce in the short run if it hires 25 workers?
A. 250 units B. 1,250 units C. 2,500 units D. 50 units