The main difference between the short run and the long run is that
A. in the long run, all inputs are fixed.
B. in the short run, some inputs are fixed and some are variable.
C. the short run always refers to a time period of less than five years.
D. the long run always refers to a time period of one year or longer.
Answer: B
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Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The higher the value for the index of intra-industry trade:
a. the lower total trade is for other products. b. the greater percentage of trade in that good is intra industry. c. the more we should be concerned about job loss and outsourcing. d. the higher the gains from trade.
Refer to Figure 1. The figure represents a circular-flow diagram. Boxes C and D represent
a. households and government.
b. firms and government.
c. the markets for goods and services and the financial markets.
d. None of the above are correct.
Which of the following is an example of a public good?
A. space exploration B. airline travel C. a U2 concert D. a Big Mac