In the long run, all inputs are variable
a. True
b. False
A
You might also like to view...
In the figure below, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________. 
A. an expansionary: eventually shift to SRAS" B. a recessionary; eventually shift to SRAS' C. an expansionary; eventually shift to SRAS' D. a recessionary; eventually shift to SRAS"
Which of the following is not an explicit cost?
A) taxes B) rent C) wages D) opportunity cost of using an owner's savings
Which of the following statements accurately describes pre-1763 British colonial policy?
a. England taxed the colonies extensively, requiring the colonists to pay a substantial portion of the costs of government administration and military protection. b. The Navigation Acts placed a severe economic burden on the colonies, equaling more than 30 percent of colonial income. c. England discouraged western settlements in an effort to reduce conflicts between colonists and Native Americans. d. Colonial laws were not officially in effect until the Privy Council granted its approval. e. All of the above statements accurately describe pre-1763 British colonial policy.
Competitive firms that earn a loss in the short run should
a. shut down if P < AVC. b. raise their price. c. lower their output. d. All of the above are correct.