The fixed-cost fallacy occurs when
a. A firm considers irrelevant costs
b. A firm ignores relevant costs
c. A firm considers overhead or depreciation costs to make short-run decisions
d. Both a and c
d
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The result that the growth rate of output per worker is equal to 1.43 × is ________
A) true of the Solow model only B) true of both the Solow model and the Romer model C) true of the Romer model only D) true under the common-law legal system only
Federal deposit insurance may encourage banks to take on riskier loans that could lead to a greater incidence of bank failures
Indicate whether the statement is true or false
Fluctuations in the foreign ________________ rate can affect an economy’s ability to repay its outstanding international debt in the short run.
a. unemployment b. exchange c. production d. return
If a binding price floor is imposed on the video game market, then
a. the demand for video games will decrease. b. the supply of video games will increase. c. a surplus of video games will develop. d. All of the above are correct.