In analyzing the decision to shut down in the short run we assume that the firm's fixed costs are
A) implicit costs.
B) capital costs.
C) nonmonetary opportunity costs.
D) sunk costs.
Answer: D
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By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, the inflation rate exceeded 10%. By the end of 1986 the inflation rate had been brought down to 1.9%. Which of the following is true about the Volcker Disinflation?
A) lower inflation resulted from a tightening of monetary policy B) by raising the federal funds rate to over 20%, the Federal Reserve stimulated the economy resulting in lower levels of both inflation and the unemployment rate by the early 1980s C) the unemployment rate was brought down by 1982 but it took longer to reach lower inflation rates D) all of the above E) none of the above
Which of the following statements about income and education in the United States is correct?
a. There is no relationship between income and education. b. At every age, average earnings are higher for those with more education. c. Average earnings are higher for those with more education, but only if they are over the age of 60. d. Average earnings are higher for those with more education, but only if they are under the age of 60. e. Income levels peak at a younger age for those with college educations than they do for those with only elementary educations.
That part of disposable income not spent on consumption is defined as:
a. transitory disposable income. b. permanent disposable income. c. disposable income. d. autonomous consumption. e. saving.
Organizational structure can be a strategic asset if it
A) adds value. B) adds value and can be duplicated. C) adds value and cannot be duplicated. D) can be franchised.