What do economists mean when they say that a firm's plant is fixed?
What will be an ideal response?
The phrase that a "firm's plant is fixed" refers to the fact that, in the short run, there are some factors that are fixed, that is, the quantity employed cannot be changed. These factors of production, which include factors such as the firm's capital and land, are collectively referred to as the firm's plant.
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Which of the following groups of people will be considered as unemployed?
A) Workers who experienced a wage cut due to recession B) Housewives raising kids at home and not looking for jobs C) Employees working in public sector undertakings D) Agricultural workers who are unemployed and have been looking for jobs for the last four weeks
The largest asset of the Fed from those on this list is
A) U.S. Treasury securities. B) mortgage-backed securities. C) loans to depository institutions. D) currency outstanding.
The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
a. benefit-cost ratio. b. post hoc, ergo propter hoc. c. composition. d. a priori expectations.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.