Learning by doing, which leads to lower costs in the long run, is often
A) increased when new machinery is brought into the production process.
B) a function of cumulative output, that is producing more of the good or service.
C) improved through better use of computers in the production process.
D) not very important to most firms.
B
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
a. place downward pressure on the prices of healthcare services. b. lead to higher healthcare prices. c. increase the incentive of consumers to economize on their purchases of healthcare services. d. increase the incentive of healthcare providers to provide their services at economical prices.
Large economies, such as the U.S. economy, should ________ adopt a flexible exchange rate, because giving up the power to stabilize the domestic economy via monetary policy ________.
A. nearly always; comes with a high cost B. nearly always; is of little consequence C. almost never; is of little consequence D. almost never; comes with a high cost
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.