Consider the following statements when answering this question. I. As Boeing's production fell 10% to 100 planes last year, learning by doing cannot account for this year's changes in long-run average costs. II
Failure to take into account the effects of learning by doing will lead to overestimates of the cost-output elasticity. A) I is true, and II is false.
B) I is false, and II is true.
C) Both I and II are true.
D) Both I and II are false.
B
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In the long run, what determines the value of money?
A) real GDP B) money market equilibrium C) the government budget balance D) international trade E) equilibrium in the loanable funds market
When a firm increased its output by one unit, its AFC decreased. This is an indication that
A) the law of diminishing returns has taken effect. B) MC < AFC. C) AVC < AFC. D) the firm is spreading out its total fixed cost.
A. by inclusive unions as an argument in bargaining for wage rate increases. B. to justify the application of minimum wages to low-wage labor markets. C. to explain the divergence between wage rates and marginal resource cost. D. to explain wage
rate differences based on differing nonmonetary aspects of jobs. A. union workers are better educated and more productive than nonunion workers. B. expenditures on education can be explained in essentially the same way as expenditures on machinery and equipment. C. worker productivity correlates negatively with annual earnings. D. the level of education is unrelated to the level of one's income.
The Masstricht treaty set the budget ratio to GDP to be ________ in order for countries to qualify to join the Euro area
A) below 3% B) below 4% C) below 5% D) below 6%