The short run is best defined as:
A. a period of time sufficiently short that at least one factor of production is fixed.
B. one year or less.
C. the period of time between quarterly accounting reports.
D. a period of time sufficiently short that all factors of production are variable.
Answer: A
You might also like to view...
You're maximizing utility when:
A. (MU of X)/(P of X) = (MU of Y)/(P of Y). B. (MU of X)/ (P of X) > (MU of Y)/ (P of Y). C. (MU of X)/(P of Y) = (MU of Y)/(P of X). D. (MU of X)/(P of X) < (MU of Y)/(P of Y).
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment:
A. is not used immediately. B. merely replaces existing, but worn out, capital. C. replaces existing workers. D. is more efficient than existing capital.
If supply decreases and demand increases,
A. the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls. B. the market clearing price definitely rises, and the equilibrium quantity falls. C. the market clearing price definitely rises, and the equilibrium quantity is indeterminate. D. the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.