Which of the following is not assumed before the implementation of a policy?
a. The appropriate policy is selected instantaneously
b. The appropriate policy is implemented instantaneously.
c. Once implemented, the policy works as advertised.
d. The policy, once implemented, works in no time.
e. Lags that reduce the effectiveness of the policy are predictable.
e
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If the price of a good rises and the consumer's budget remains the same, what happens to the consumer's consumption possibilities?
What will be an ideal response?
The real interest rate, business taxes, expected profits and business confidence, and capacity utilization are embedded in the slope of the investment function
Indicate whether the statement is true or false
Diseconomies of scale occur
A. only in the long run. B. because of fixed costs. C. only in the short run. D. none of these.
In the long run
A) the firm's fixed costs are greater than its fixed costs in the short run. B) all of the firm's costs are explicit costs; there are no implicit costs of production. C) the firm is more profitable than it is in the short run. D) all of the firm's costs are variable costs.