The fact that a firm is using a capital-intensive method of production means that input substitution is not possible
Indicate whether the statement is true or false
FALSE
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Tax evasion is
A. an illegal act. B. prevalent in the United States. C. failing to pay legally due taxes. D. all of these answer options are correct.
When market participants have rational expectations,
A) they use all information available to them. B) they only slowly adjust their expectations to news which could affect prices or returns. C) they are less likely to make accurate forecasts than if they have adaptive expectations. D) they are able to forecast interest rates more accurately than inflation rates.
If the exchange rate between the U.S. dollar and the Russian ruble was 0.04 ($0.04 = one ruble), what would be the price in dollars of a bottle of Russian wine selling for 2,000 ruble?
a. $50 b. $80 c. $100 d. $500
If production in the economy is efficient, then changes in market prices
A. Move us to a point above the production possibilities curve. B. Have no effect on our position on the production possibilities curve. C. Move us along the edge of the production possibilities curve. D. Move us from a point below the production possibilities curve to a point on the production possibilities curve.