Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential
Answer: B
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All individuals and firms in a country must gain from trade in order for it to be beneficial to the nation
Indicate whether the statement is true or false
A firm that has merged with many other firms producing a variety of goods unrelated to each other
a. faces higher risks than if it specialized in one and focused on it b. increases its market share in the industry c. cannot maximize profit although it does maximize sales d. cannot survive in the long run e. is a conglomerate
When a rug factory increases the labor it hires from 10 to 12 workers, the number of rugs produced increases from 16 to 20 . We know then that the marginal physical product of labor is
a. increasing b. negative c. impossible to compute d. 4 rugs e. 2 rugs
Figure 9.5Figure 9.5 shows the short-run and long-run effects of an increase in demand of an industry. The industry is:
A. a constant-cost industry. B. an increasing-cost industry. C. a decreasing-cost industry. D. There isn't sufficient information.