The long run is characterized by:
A. the relevance of the law of diminishing returns.
B. at least one fixed input.
C. the ability of the firm to change its plant size.
D. insufficient time for firms to enter or leave the industry.
Answer: C
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One way to characterize technological change is "creative destruction," which basically means that today's innovation will productively destroy yesterday's capital investment
This destruction creates new job opportunities, boosts production and offers a greater variety or more goods and services than in the past. Indicate whether the statement is true or false
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: 
Assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30. At the prices and income given above, what is the income elasticity?
A. 0.21 B. 0.31 C. -1.62 D. 1.50 E. -0.87
Thomas Jefferson argued that the U.S. should adopt the Spanish dollar as the official unit of account because
a. so many colonists came from Spanish-speaking nations. b. it was based on the decimal system. c. it was less prone to inflation than other units of account. d. it was the unit of account used in most European countries.
Real GDP
a. moves in the opposite direction as unemployment. b. increases as production falls. c. falls when households save a smaller fraction of their income. d. All of the above are correct.