Elasticities are often _______ in the short run than in the long run.
a. higher
b. lower
c. equal
d. congruent
b. lower
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Why is it difficult to implement fiscal policies?
What will be an ideal response?
The principal demanders of U.S. dollars in the foreign exchange market are:
A. the Federal Reserve. B. foreigners wishing to purchase U.S. goods or assets. C. U.S. households or firms wishing to purchase U.S. goods or assets. D. U.S. households or firms wishing to purchase foreign goods or assets.
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that worker is
A. $8 per day. B. $30 per day. C. $240 per day. D. indeterminate with the given information.
Equilibrium price differentials for productive resources:
A. Tend to be self-eliminating B. May be caused by differences in the quality of those resources C. Are eliminated when the allocation of resources is in a state of equilibrium D. Are unrelated to differences in nonmonetary benefits