If the long-run supply curve is upward sloping, we know that
A) entrepreneurs are earning higher profits as output expands.
B) some input prices are increasing as the industry expands.
C) firms are getting larger as the industry contracts.
D) the law of diminishing marginal returns has set in.
Answer: B
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In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
In which of the diagrams above would we see a shortage at the initial price after the indicated curve has shifted?
A. (1) and (4) B. (2) and (3) C. (1) and (3) D. (2) and (4)
The least squares regression is based on:
A) maximizing the absolute sum of squares errors. B) minimizing the absolute sum of squares errors. C) maximizing the sum of squared errors. D) minimizing the sum of squared errors.
Enrollment in the Medicaid program
A. is designed for those persons 65 years of age and older. B. has increased due to expanded eligibility. C. covers all medical expenses that a poor person may incur. D. requires a substantial co-payment that has not been helpful to poor families.
Which of the following is a public good?
a. Pencil. b. Apple. c. Light house. d. Gun.