The expansion path shows how
A. the cost-minimizing input choices change as the firm's output level changes.
B. the marginal products change as the firm's output level changes.
C. the cost-minimizing input prices change as the firm's output level changes.
D. the profit-maximizing input choices change as the firm's output level changes.
E. input prices change as the firm's output level changes.
Answer: A
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At Christmastime, individuals choose to hold more cash and fewer deposits to facilitate their Christmas shopping. This condition will
A) increase the money supply, for people will be spending more money. B) have no effect on the money supply because people are just exchanging one form of money (deposits) for another form (cash). C) reduce the money supply because there will be a drain of reserves out of the banks. D) reduce the money supply, for all that cash is spent on Christmas presents.
Tobin's q is the ratio of the
A) dividend payments of a firm to the current stock price of the firm. B) market value of a firm to the replacement cost of its capital. C) current stock price of a firm to the number of outstanding shares of stock in the firm. D) current stock price of a firm to the total earnings of the firm.
If most people expect the inflation rate will increase, the:
A. short-run aggregate supply curve would shift to the left. B. aggregate demand curve would shift right. C. long-run aggregate supply curve would shift right. D. short-run aggregate supply curve would shift to the right.
Governments do all of the following except:
A. demand goods and services from businesses in the goods market. B. demand labor services from households in the factor market. C. supply labor services to businesses in the factor market. D. oversee the interaction of households and businesses in the goods and factor markets.