Which of the following statements is not correct?
a. In the long run, there are no fixed costs.
b. Marginal cost is independent of fixed costs.
c. Economies of scale is a short-run concept.
d. Diminishing marginal product explains increasing marginal cost.
c
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The ________ in the United States is best described as a managed float exchange rate system
A) current exchange rate system B) exchange rate system used prior to the Great Depression C) exchange rate system set up at the end of World War II D) earliest used exchange rate system
GLS involves
A) writing the model in differences and estimating it by OLS, using HAC standard errors. B) truncating the sample at both ends of the period, then estimating by OLS using HAC standard errors. C) checking the AIC rather than the BIC in choosing the maximum lag-length of the regressors. D) transforming the regression model so that the errors are homoskedastic and serially uncorrelated, and then estimating the transformed regression model by OLS.
Low-skill workers earn a lower wage than more experienced, higher skilled workers because the
a. low-skill workers lack the intelligence necessary to do any other form of work. b. low-skill workers were never given the opportunity to invest in human capital. c. supply of low-skill workers is large relative to the demand for workers in this skill category. d. low-skill workers are too lazy to search for other employment opportunities.
Study the graph. Suppose this nation starts with producing all military goods. It then decides to produce a mix of civilian and military goods represented by point B. What represents the costs in military goods given up?
What will be an ideal response?