The focus of firm decisions in the short run is primarily on
A. capital investment.
B. variable inputs.
C. plant size.
D. economies of scale.
Answer: B
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Which of the following constitutes inflation?
A. an increase in medical care costs B. a one time increase in average level of prices C. an increase in the market interest rate D. a sustained increase in the average level of prices
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
The Wall Street Reform & Consumer Protection Act of 2010 has the following provisions, except:
A. It gives broader authority to the Fed to regulate all large financial institutions B. It establishes a process for liquidating in an orderly way the assets of large, failing financial institutions C. It creates a Financial Stability Oversight Council to look out for systemic risk in the financial system D. It consolidates the operations of Wall Street, commercial banks, and other financial institutions
DSGE models are
A) similar to RBC models but allow for shocks other than productivity shocks. B) similar to RBC models, but government spending shocks play a major role. C) similar to Keynesian models except in the long run. D) similar to Keynesian models except in the short run.