The funds firms use to buy and operate physical capital are referred to as
A) government capital.
B) physical capital.
C) business capital.
D) human capital.
E) financial capital.
E
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers. An increase in the demand for its product led Santa Fe to hire 150 new workers
Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete. Which of the following statements is true? A) The long run for Santa Fe is longer than 1 year. B) The wages and benefits paid to the new workers are implicit costs. C) In the short run Santa Fe's variable costs increase but its fixed costs decrease. D) The short run for Santa Fe is 1 year.
Each of the following has been a drag on our economic growth except
A. health and safety regulations. B. environmental protection requirements. C. rising health care costs. D. technological change.
One of the management groups is arguing for a price reduction as a way to sell more gallons and increase income. Is this a good suggestion?
What will be an ideal response?