The long run is a time period that is
A) five years or longer.
B) long enough to change the amount of labor employed.
C) long enough to change the size of the firm's plant and all other inputs.
D) long enough to change the amount of labor employed but not to change the size of the plant.
E) None of the above answers describes the long run.
C
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Collateral is
A) the interest rate that banks charge high-quality borrowers. B) assets pledged to the bank in the event the borrower defaults. C) the difference between the value of a bank's assets and the value of a bank's liabilities. D) required reserves minus excess reserves.
The equilibrium price of a good is:
(a) The price with which everyone is unhappy. (b) The price at which the quantity demanded and quantity supplied of a good are equal. (c) The price set by the regulators in the economy. (d) Both (b) and (c).
In the early 2000s, the number of Eastern Europeans moving to England to join the labor force increased. This has led to fears by British citizens that Eastern Europeans will steal jobs from Western Europeans. What best describes their fear?
A. Wages in Britain will fall since the supply of labor is increasing. B. Cost of living in Britain will increase as the demand for goods increases. C. Wages in Britain will fall as the demand for immigrants increases. D. Wages in Britain will fall since the quantity of labor supplied is increasing.
ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. The interest rate must be ________ for the firm to undertake the project.
A. exactly equal to 10% B. at least 11% C. no more than 9% D. It is indeterminate from the given information.