Output in the long run is determined by which of the two following factors when an economy operates at full employment?
A) capital and supply B) capital and labor
C) the "real" GDP and purchases D) imports and exports
B
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The M1 definition of the money supply includes, along with currency,
a. demand deposits and savings accounts b. demand deposits and credit cards c. demand deposits and debit cards d. demand deposits and travelers' checks e. travelers' checks and credit cards
If the price index had moved from 110 in 2006 to 115 in 2007, the rate of inflation in 2007 was _____
a. 15 percent b. 11 percent c. 5.5 percent d. 4.55 percent
If we say that two variables are inversely related, this means that:
A. the two graph as an upsloping line. B. an increase in one variable is associated with a decrease in the other. C. an increase in one variable is associated with an increase in the other. D. the resulting relationship can be portrayed by a straight line parallel to the horizontal axis.
Answer the following questions true (T) or false (F)
1. For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small. 2. The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league. 3. Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market.