In order to understand how the economy works in the short run, we need to
a. study the classical model.
b. study a model in which real and nominal variables interact.
c. understand that "money is a veil.".
d. understand that money is neutral in the short run.
b
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In the very short run:
a. new firms may enter an industry. b. existing firms may change the quantity they are supplying. c. price and quantity supplied are absolutely fixed. d. quantity supplied is absolutely fixed.
Which of the following will result from an epizootic affecting sheep reared for wool?
a. The epizootic would lower people's preference for woolen clothes. b. The price of new woolen clothes would rise. c. The epizootic would lower people's preference for synthetic coats. d. The production of new woolen clothes would rise.
What is marginal external cost? Give an example
What will be an ideal response?
The movement in U.S. population from the farms to urban areas was caused primarily by
a. each member of a farm family specializing in a particular set of tasks b. a sharp increase in farm productivity c. a decline in the demand for labor in urban areas d. a sharp decline in the demand for agricultural products e. increased education among married women