Which of the following statements is FALSE?
A. In the short run all inputs are fixed.
B. A firm plans in the long run and operates in the short run.
C. In the long run all inputs are variable.
D. In the short run, a firm can change some but not all of its inputs.
Answer: A
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In the United States, the lender of last resort is
A) Fannie Mae. B) the Federal Reserve. C) the Federal Deposit Insurance Corporation. D) Securities and Exchange Commission.
Many modern economists
a. combine Keynesian short run and neoclassical long-run theories to understand the economy. b. use only Keynesian theories to understand the economy. c. use only neoclassical theories to understand the economy. d. use Rational and Adaptive Expectation theories to understand the economy.
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
A) 75 cents. B) zero. C) 80 cents. D) 20 cents.
Graphically, producer surplus is measured as the area:
A. under the demand curve and below the actual price. B. under the demand curve and above the actual price. C. above the supply curve and above the actual price. D. above the supply curve and below the actual price.