Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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An increase in the minimum wage would lift relatively few poor people out of poverty
Indicate whether the statement is true or false
If the firm hires 5 workers, the average cost equals
a. $10 b. $1000 c. $80 d. Need more information
How does Ebay differ from an economist's view of a perfect competitive market?
a. Ebay has few buyers whereas perfect competitive industry assumes many buyers b. Ebay has few sellers whereas perfect competitive industry assumes many sellers c. There is limited information in ebay whereas perfect competitive industry assumes full information for both buyers and sellers d. There is no difference between these two markets.
In the long run
A. the expansion path shows how the input marginal products change as the firm's output level changes. B. all inputs are fixed. C. a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio. D. both a and b E. none of the above