Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers
a. both labor and capital to be fixed.
b. both labor and capital to be variable.
c. labor to be variable and capital to be fixed.
d. capital to be variable and labor to be fixed.
c
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All of the following are government capital except
A) roads. B) schools. C) Treasury securities. D) mass-transit systems.
In the long run, money demand and money supply determine
a. the value of money and the real interest rate. b. the value of money but not the real interest rate. c. the real interest rate but not the value of money. d. neither the value of money nor the real interest rate.
Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.
If the Federal Reserve wants to set the nominal interest rate at 4 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 800 B. purchases; 200 C. sales; 200 D. sales; 800
Empirically measuring the marginal social benefit of pollution is ________ and empirically measuring the marginal social cost of pollution is ________.
A. difficult; relatively easy B. difficult; difficult C. relatively easy; difficult D. relatively easy; relatively easy