If an increase in the price of one input causes an increase in demand for labor, the two inputs are
A) complementary.
B) substitutes.
C) interchangeable.
D) flexible.
C) interchangeable.
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One important reason why the United States government is not likely to go bankrupt even with a large public debt is that it has
A. the ability to decrease interest rates and increase investment spending. B. the capacity to pay off its outstanding debt with gold. C. a strong military to protect it from creditors. D. the power to print money to finance the debt.
A firm that minimizes average cost will not survive in the long run
a. True b. False
The major advantage of the corporation is
a. limited liability for owners. b. greater profit incentive than the other forms of business organization. c. lower taxes for owners, who are taxed only once. d. ability of owners to have hands-on management of the firm.
An increase in the quality of items included in the Consumer Price Index would cause the index to
A. overstate the true amount of unemployment. B. overstate the true amount of inflation. C. understate the true amount of unemployment. D. understate the true amount of inflation.