Economists call a production period that is too brief for some of the inputs to be varied the ______.
a. short run
b. long run
c. fixed term
d. fiscal year
a. short run
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A bank's largest liability is its
A) shareholder equity. B) long-term debt. C) short-term borrowing. D) deposits of its customers.
The closing of the frontier in the early 20th century led eventually to
(a) exhausting the land of all fertility by overusing it. (b) a change from an "intensive" to an "extensive" use of the land. (c) an emphasis on water conservation projects and the irrigation of arid lands. (d) the sale of Bureau of Land Management and Forest Service lands to provide more land for private agriculture.
Suppose the economy is in long-run equilibrium at the level of potential output. What will be the long-run effect of an expansionary monetary policy?
a. a higher price level b. a higher level of real output c. both a higher price level and a higher level of real output d. a lower price level e. a lower level of real output
Which effect of a price change moves the consumer along the same indifference curve to a point with a new marginal rate of substitution?
a. the budget effect b. the preference effect c. the substitution effect d. the income effect