In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a
A) short-run cost.
B) variable cost.
C) productivity cost.
D) fixed cost.
E) marginal cost.
Answer D. fixed cost.
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Along an upward-sloping labor supply curve, as the wage rate increases, the opportunity cost of leisure ________, causing individuals to supply a ________ quantity of labor
A) decreases; greater B) increases; greater C) remains constant, constant D) increases; lower
Which of the following might cause an upward shift of the modern Phillips curve?
A) an increase in oil prices B) an increase in the price of imports C) wage agreements that include compensation for inflation D) all of the above E) none of the above
Refer to Scenario 7.3. Suppose that your firm decides to double its output to 400. To achieve this level of output the firm will have to:
A) exactly double its inputs. B) more than double its inputs. C) less than double its inputs.
One reason that economists encourage free trade is that
A) it encourages a more rapid spread of technology. B) it allows us to exploit the workers of less developed countries. C) we can sell more goods. D) it increases our capital stock.