A basic distinction between the long run and the short run is that
A. if a firm produces no output in the long run, it still incurs a cost.
B. in the long run, some inputs are fixed, while in the short run, all inputs are variable.
C. the opportunity costs of production are lower in the short run than in the long run.
D. in the short run, complete adjustment of all inputs is impossible, while in the long run all inputs can be adjusted.
Answer: D
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Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies. B. higher rates of infant mortality. C. higher material standards of living. D. higher rates of literacy.
East Asian economies have grown
A) rapidly because of high saving rates. B) rapidly despite a lack of property rights. C) slowly because of a lack of property rights. D) slowly because of low saving rates. E) rapidly because they virtually eliminated international trade.
Refer to the above table. The overall balance of payments of Nation "A" is
A) +85. B) - 85. C) 0. D) +25.
According to the matrix shown, the outcome of the "game" will be:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. both firms will collude and act like a joint monopolist.
B. both firms will compete.
C. Firm A will compete and Firm B will collude.
D. Firm B will compete and Firm A will collude.