What is the difference between the short run and the long run as economists define the two?
The short run is a period of time within which at least one resource is fixed. It could be a commitment for a rental lease, for example. The short run is also a period too short for new firms to enter the industry or for firms currently in the industry to exit. For the long-run period, all resources may vary; hence, all costs are variable costs. New firms may enter the industry and old firms may exit.
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When tastes are quasilinear in leisure, the labor supply curve is vertical.
Answer the following statement true (T) or false (F)
What is the output gap? How does it change when the economy goes into recession?
What will be an ideal response?
Which economist said, "This focus on distribution makes the significance of distributional issues (transfer issues) in political life relatively greater and the significance of widespread common interest in political life relatively smaller."?
A. John Maynard Keynes B. Milton Friedman C. David Friedman D. Mancur Olson E. David Ricardo
A regulation that specifies the maximum amount of a good or service that may be imported during a specified period of time is a:
A) quota. B) tariff. C) nontariff barrier. D) export quota.