An increasing-cost industry will have
A. a perfectly elastic long-run supply curve.
B. an upward sloping demand curve in the long run.
C. a perfectly inelastic long-run supply curve.
D. an upward sloping supply curve in the long run.
Answer: D
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When the R2 of a regression equation is very high, it indicates that
A) all the coefficients are statistically significant. B) the intercept term has no economic meaning. C) a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. D) there is a good chance of serial correlation and so the equation must be discarded.
If net exports is a negative number for a particular year, then
a. the value of firms' inventories declined over the course of the year. b. consumption exceeded the sum of investment and government purchases during the year. c. the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year. d. the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.
All Fed purchases and sales of
a. corporate stocks and bonds are conducted at the New York Fed's trading desk. b. government bonds are conducted at the New York Fed's trading desk. c. real estate and other real assets are conducted by the Federal Open Market Committee. d. All of the above are correct.
In order to minimize the cost of producing a given level of output, a firm manager should use more inputs when:
A. that input's price falls. B. that input's price rises. C. the prices of other inputs fall. D. that input's price remains the same.