The long run is a period of time, or a time-frame, in which:
A. All resources are fixed
B. The level of output is fixed
C. The amount of all resources can be varied
D. The capacity of the production plant is fixed
C. The amount of all resources can be varied
You might also like to view...
When Susan makes the statement, "The government should spend less money to take care of national parks," she is
A) making a normative statement. B) making a positive statement. C) testing an economic model. D) not dealing with scarcity.
If a typical firm in a perfectly competitive industry is incurring losses, then
A) some firms will enter in the long run, causing market supply to increase and market price to rise increasing profit for all firms. B) some firms will exit in the long run, causing market supply to decrease and market price to fall increasing losses for the remaining firms. C) some firms will exit in the long run, causing market supply to decrease and market price to rise increasing profits for the remaining firms. D) all firms will continue to lose money.
With what measure does cyclical unemployment tend to move?
A. GDP deflator B. Nominal GDP C. Inflation D. Per capita GDP growth rate
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.