In reality, the long-run supply curve for a perfectly competitive market is upward sloping because:
A. of changing costs of production that firms may face.
B. not all firms have identical cost structures.
C. experienced firms will have different information and costs than new firms.
D. All of these are true.
D. All of these are true.
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A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered
A) cyclically unemployment. B) frictionally unemployment. C) seasonally unemployment. D) structurally unemployment.
The elasticity of demand for labor will be less the
A) longer the time period. B) easier it is to substitute one input for another. C) less the demand elasticity for the final product. D) larger the share of total costs accounted for by labor.
When equilibrium is present, if market conditions do not change,
a. the current price will tend to rise in the future, and the current quantity will tend to fall. b. the current price will tend to fall in the future, and the current quantity will tend to rise. c. the current price and quantity will tend to persist in the future. d. the current price will tend to persist in the future, but the current quantity will tend to rise.
The newest evidence on Head Start suggests that it is
A. modestly effective for specific populations in the long run. B. enormously effective in the long run. C. curiously counterproductive in the long run. D. completely irrelevant for all populations in the long run.