The production decision is a short-run decision.
Answer the following statement true (T) or false (F)
True
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A major difference between stocks and bonds is that
A) bonds pay their owners dividends while stocks pay interest. B) bonds pay their owners interest while stocks pay dividends. C) the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required. D) bonds represent ownership while stock represent debt.
However linked the war-induced cycle theory is to our economic reality, most economists suppose that
a. war conspiracies, seemingly far-fetched, have much validity b. these cycles were random shocks to an economy already in continuous cyclical motion c. most wars since 1815 (Napoleonic period) were initiated principally to jump-start a sagging economy d. wars are necessary to achieve sustained economic prosperity e. there is no link between war and the economy
A change in the average price level is called ________, while a change in the price of a specific good in comparison with other goods and services is called ________.
A. a change in a relative price; inflation B. a quality adjustment; a substitution bias C. a price level adjustment; a quality adjustment D. inflation; a change in a relative price
How can it be that people purchase more of a good while its price is rising?
A) The supply curve must be shifting to the left. B) The demand curve must be shifting to the right. C) Supply and demand do not change. D) It cannot happen, otherwise the law of demand is violated.