In the short run, at least one factor of production is fixed. This implies that beyond some level of output a firm will:
A. "learn by doing."
B. experience diminishing marginal returns.
C. experience increasing marginal returns.
D. have a U-shaped long-run average cost curve.
Answer: B
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For the period we are studying (1789–1860), the United States
(a) was a high tariff, protectionist nation. (b) derived the vast majority of federal revenues from the tariff. (c) was divided on the question of the tariff, with the South generally in opposition to it. (d) was characterized by all of the above.
Firefighters are highly skilled workers who are typically employed by city governments. If a city reduces the wage rate paid to firefighters to be less than the equilibrium wage rate, what happens to the economic rents earned by the firefighters?
A) Increase B) Decrease C) Remain unchanged D) Public employees like firefighters cannot earn economic rents
If technological change is factor neutral, then the firm's isoquants:
A. shift out away from the origin. B. shift in toward the origin. C. do not change in appearance. D. become flatter.
The aggregate demand and aggregate supply model helps us to understand both short-run economic fluctuations and how the economy moves from the short to the long run
a. True b. False Indicate whether the statement is true or false