The presence of different technologies can allow greater efficiency because one technology is better at peak times and the other is better at all times
Indicate whether the statement is true or false
T The high-fixed-cost technology usually will be run all the time, even at the off peak, while a low-fixed-cost technology can serve more economically only at the peak times because it is less costly to have that technology idle.
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If the contribution from capital and labor growth in a given economy equals 4.0 percent and output growth equals 6.4 percent over that same period of time, then productivity growth must equal ________
A) 25.6 percent B) 10.4 percent C) 2.4 percent D) 1.6 percent
On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n):
A. direct relationship as shown by an upward-sloping line G. B. direct relationship as shown by a downward-sloping line G. C. inverse relationship as shown by an upward-sloping line G. D. inverse relationship as shown by a downward-sloping line G.
During a recession, policy makers who use the AS/AD model would probably recommend an open market:
A. purchase of government securities that raises interest rates. B. sale of government securities that reduces interest rates. C. sale of government securities that raises interest rates. D. purchase of government securities that reduces interest rates.
Assume a perfectly competitive industry is in long-run equilibrium at a price of $75. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price
A. greater than $75. B. of $75. C. less than $75. D. either greater than or less than $75 depending on the magnitude of the decrease in demand.