A firm that produces and sells furniture gets to choose
a. how many workers to hire in both the short run and the long run.
b. the size of its factories in the short run but not in the long run.
c. which short-run average-total-cost curve to use in both the short tun and the long run.
d. All of the above are correct.
a
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The quantity theory of money:
A) assumes that the ratio of money supply to nominal GDP decreases over time. B) assumes that the ratio of money supply to nominal GDP increases over time. C) is a representation of how a change in money supply affects the price level in an economy. D) is an exact representation of how the economy behaves in the long-run.
Tariffs are frequently used in less-developed countries because _____
a. the governments need more revenue b. the governments want to encourage exports c. the governments find it easier to monitor border transactions than interior transactions d. the governments prefer to tax goods over services
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result. B. supply curve to shift more to the left than the world demand curve as a result. C. demand curve to shift more to the right than the world supply curve as a result. D. demand curve to shift more to the left than the world supply curve as a result.
The income elasticity of demand for education is 3.5. Thus, a 6% decrease in income will
A. increase the quantity of education demanded by 6%. B. increase the quantity of education demanded by 21%. C. decrease the quantity of education demanded by 3.5%. D. decrease the quantity of education demanded by 21%.