If a dollar spent on capital yields less marginal revenue product than labor, the profit of the firm is reduced if it hires less capital than labor
a. True
b. False
Indicate whether the statement is true or false
False
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Historical note: All of the following were examples in the text of goods that had been patented except
a. penicillin b. tabs on beer and soda cans c. Polaroid's instant film camera d. watercolor paint e. Xerox's photocopier
Which of the following will result in an increased price of milk?
A) A shift to the right of the supply curve for milk. B) A shift to the right of the demand curve for milk. C) An increase in the number of milk suppliers. D) A decrease in the number of milk buyers.
In the long run, the supply curve
A) is more elastic than it is in the short run. B) is less elastic than it is in the short run. C) exhibits no systematic sequence of changes in elasticity. D) exhibits no change in elasticity at all.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.