The main difference between the short run and the long run is that:
A. Firms earn zero profits in the long run
B. The long run always refers to a time period of one year or longer
C. In the short run, some inputs are fixed and some are variable
D. In the long run, all inputs are fixed
C. In the short run, some inputs are fixed and some are variable
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What are the three major types of foreign-exchange systems, and how do they operate?
What will be an ideal response?
The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures
A) induced; investment; autonomous B) induced; consumption; autonomous C) autonomous; consumption; induced D) autonomous; investment; induced
Which of the following is an assumption of the decision-making process followed by consumers to maximize utility?
A. Marginal utility always increases as more units of a good are consumed. B. The consumer's income increases as prices of goods increase. C. The consumer considers the prices of the products. D. The consumer oftentimes is not sure about her preferences.
Refer to the above figure. Demand is
A) perfectly elastic. B) unitary elastic. C) perfectly inelastic. D) undetermined without more information.