Short-run costs are never equal or lower than long-run cost
Indicate whether the statement is true or false
False. Since the long-run curve "envelopes" all short-run curves there is always a level of output where short-run cost are equal to long-run cost. However, short-run cost can never be lower than long-run cost.
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If the annual interest rate remains unchanged over the next two years, and the present value of $120 to be received one year from now is $100, what will $100 be worth two years from now?
A) $120 B) $140 C) $144 D) Uncertain. We need to know the interest rate.
Looking at the globalized AS/AD model, the economy can exceed potential output, without generating accelerating goods inflation, because:
A. the domestic price level always exceeds the world price level. B. the world price level always exceeds the domestic price level. C. the world price level puts a cap on the domestic price level. D. the LRAS curve is no longer vertical.
Adjusting for inflation, the real minimum wage has fallen over the last 40 years.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. The employers? tax burden is
A. $2,100. B. $700. C. $1,400. D. $0.