In the short run, costs that arise from resources that cannot vary in quantity are known as ____________, whereas costs from inputs that can vary in quantity are known as ____________
a. fixed costs; variable costs
b. explicit costs; implicit costs
c. opportunity costs; variable costs
d. fixed costs; opportunity costs
e. variable costs; fixed costs
A
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If the expected profitability of a business activity increased we might expect investment spending to:
A. increase. B. decrease. C. remain constant. D. there is not enough information to determine what would happen.
In a game of bargaining, the player who is willing to:
A. make the first move has more bargaining power and so receives a better payoff. B. hold out longer has more bargaining power and so receives a better payoff. C. be cooperative has more bargaining power and so receives a worse payoff. D. hold out longer has more bargaining power and so receives a worse payoff.
An effective price ceiling will:
A. induce new firms to enter the industry. B. result in a product shortage. C. result in a product surplus. D. clear the market.
For this question, assume that expectations of P and A are correct. Now suppose that there is a 1% increase in A. Given this information, which of the following will occur?
A) a 1% increase in the real wage and a reduction in the natural rate of unemployment B) a 1% increase in the real wage and no change in the natural rate of unemployment C) no change in the real wage and an increase in the natural rate of unemployment D) no change in the real wage and a reduction in the natural rate of unemployment