Why will the long-run market supply curve for most products slope upward to the right?
a. The firms producing the product will be unable to expand the size of their plant and equipment in the long run.
b. Economies of scale are present in most industries.
c. Most products are produced under conditions of constant cost.
d. Resource prices will rise and push costs upward as the output of the industry expands.
D
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Actions on the part of monetary and fiscal policy makers that are undertaken in response to some change in the overall economy are known as
A) creative policy making. B) passive policy making. C) active policy making. D) nondiscretionary policy making.
If interest rates increase, the present value of a given payment in the future will
A) cause an inflation. B) remain the same. C) increase. D) decrease.
What is an inside director?
A) a movie director who also appears in the movie B) the CEO that is selected by the corporation's board of directors C) a board of director chair who has been in the job for at least three years D) a member of a corporate board of directors that is also a manager of the business
The free rider problem is caused by the:
A. "rivalness" in consumption of a good leading to the undersupply of it. B. incentive to oversupply the good since it is nonrival in consumption. C. nonexcludability of a good leading to the undersupply of it. D. "rivalness" in consumption of a good leading to the overconsumption of that good.