Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result
A) the economy will move up along the long-run aggregate supply curve.
B) the long-run aggregate supply curve will shift to the right.
C) the long-run aggregate supply curve will shift to the left.
D) the economy will move down along the long-run aggregate supply curve.
C
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If a firm has a long-run average cost of $2 when it produces 4,000 units of an input and has a long-run average cost of $1 when it produces $10,000 units and the firm needs 10,000 units of the input, the firm ________ experience economies of scale, which makes the firm ________ likely to make the input rather than buy it.
A) does not; more B) does; less C) does; more D) does not; less
Which of the following would not be considered physical capital?
A. A spotlight B. An optical lens C. A trained physicist D. A clipboard
Pension funds ________
A) acquire access to funds by accepting deposits then using these monies to lend to households and firms B) raise funds by selling commercial paper then lend these funds to consumers C) are a special type of mutual fund D) acquire access to monies through the payment of premiums by employees
Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's:
A) ME curve shifts leftward. B) AE curve shifts rightward. C) ME and AE curves shift rightward. D) MV curve shifts rightward.