The basic difference between the short run and the long run is that:
A. economies of scale may be present in the short run but not in the long run.
B. the law of diminishing returns applies in the long run but not in the short run.
C. all costs are fixed in the short run, but all costs are variable in the long run.
D. at least one resource is fixed in the short run, while all resources are variable in the long run.
Answer: D
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The short-run Phillips curve shows
A) a tradeoff between the unemployment rate and the inflation rate. B) a tradeoff between real GDP and unemployment. C) the expected inflation rate. D) the natural unemployment rate. E) potential GDP.
The average number of times per year each dollar is used to transact an exchange is known as the:
a. liquidity of money. b. velocity of money. c. quantity theory of money. d. equation of exchange e. rapidity index
Network effects occur when the value of a platform to its users changes as the number of users rises.
Answer the following statement true (T) or false (F)
How is human capital most commonly measured?
A. By the organizational rank and seniority B. By the amount of pay and incentives C. By the amount of education and training D. By the compensation structure and work policies