Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true about the calendar time period associated with the short run for the two industries?
A. The short run would be one year for the lemonade stand and exactly two years for the nuclear plan
B.The short run is longer for the power plant than it is for the lemonade stand
C.The short run is the same for the power plant as it is for the lemonade stand.
D. The short run is shorter for the power plant than it is for the lemonade stand.
Answer is D. The short run is shorter for the power plant than it is for the lemonade stand. (The amount of calendar time associated with the short run varies from industry to industry.)
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During 2015, a country reports aggregate planned expenditures of $5 trillion and an actual real GDP of $4 trillion. During 2015,
A) inventories are less than planned. B) inventories are greater than planned. C) actual aggregate expenditures are greater than real GDP. D) actual aggregate expenditures are less than real GDP. E) inventories are unaffected.
The first successful application of continuous process manufacturing was in:
a. textile mills. b. automobile manufacturing. c. manufacturing of guns. d. grain milling.
Which of the following policies would most likely increase the money supply?
a. Selling government bonds b. Raising the discount rate c. Lowering tax rates d. Lowering the required reserve ratio e. Decreasing the prime lending rate
Which of the following is a characteristic of an oligopolistic industry? a. Each firm faces many competitors who sell identical products. b. Many firms compete to sell similar, but differentiated, products. c. Firms face no competitors
d. A few large firms have all or most of the sales in an industry.