If workers underestimate inflation, the aggregate supply curve will tend to be
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: A
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Which of the following statements is true?
a. Economic profit equals accounting profit minus implicit costs. b. The short run is any period of time in which there is at least one fixed input. c. A fixed input is any resource for which the quantity cannot change during the period under consideration. d. In the long run there are no fixed costs. e. All of these.
The reason why public subsidization of industries in less-developed countries causes slow economic growth is that:
a. when companies face no competition, there is no incentive for them to improve their production. b. too much of the taxpayer's money is spent in these programs. c. consumers tend to develop an aversion for the purchase of subsidized goods and services. d. subsidies tend to create too much competition for products. e. subsidization creates shortage in the product market.
The value of the marginal product of capital can be calculated as the market price of the good multiplied by the marginal product of capital
a. True b. False Indicate whether the statement is true or false
Non-profit organizations may
a. issue stock. b. provide goods and services to members. c. pay income taxes. d. pay dividends.