What three things must a firm know in order to calculate costs?
What will be an ideal response?
(1.) The techniques of production available.
(2.) The prices of inputs.
(3.) Output.
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If the economy is in equilibrium with real GDP less than potential GDP, there is ________ gap and a fiscal policy that ________ is appropriate
A) an inflationary; increases aggregate demand B) an inflationary; decreases aggregate demand C) a recessionary; increases aggregate demand D) a recessionary; decreases aggregate demand E) a recessionary; increases potential GDP
The government heavily subsidizes the production of ethanol to encourage the purchase of ethanol over oil, a less environmentally friendly form of energy. Given that the supply elasticity of ethanol, ?, is estimated to be about 0
13, what would the elasticity of demand, ?, have to be for consumers to receive at least half of the subsidy, and therefore encourage ethanol consumption? A) ? must be less than . B) ? must be greater than . C) ? must be more inelastic than the elasticity of supply. D) Both A and C.
The major difference between propensity score matching and synthetic control is that:
a. propensity score matching requires the researcher to identify qualified donor pools in choosing a control group. b. propensity score matching is an application of the methodology used in the comparative case study. c. synthetic control uses logit regression to match individuals in the treatment group with individuals with similar characteristics to create a control group. d. the way in which the control groups are identified is different.
Changes in currency values ______.
a. occurred daily or even hourly under the Bretton Woods system b. are frequent and of large magnitude under the flexible-rate system c. of 30 percent overnight are fairly common under the flexible-rate system d. were infrequent but of large magnitude under the Bretton Woods system