Refer to the above figure. Which panel represents the long-run supply curve for a constant cost industry?
A. Panel A
B. Panel B
C. Panel C
D. Panel D
Answer: A
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Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $6 and the managers of Big Woods order 1,000 sheets of plywood, what is the total annual carrying costs of the inventory?
A) $3,500 B) $7,000 C) $3,000 D) $6,00
The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because some of the income from the factory accrues to people who do not live in Algeria.
a. true b. false
A study of New York City (NYC) tax rates concluded that taxes on the nonmanufacturing sector should be higher since that sector has fewer alternatives. Manufacturers are more mobile and may move to avoid higher taxes. This means that
A. nonmanufacturing firms have a more elastic demand for the NYC locations. B. manufacturing firms have an inelastic demand for the NYC locations. C. nonmanufacturing firms have relatively inelastic demand for the NYC locations. D. nonmanufacturing demand for the NYC locations is perfectly elastic.
If a macroeconomist studying the causes of unemployment suspects that changes in technology might play a role, then this macroeconomist is at which step in the process of developing an economic model?
A) Identify the exogenous variables. B) Identify the endogenous variables. C) Compare the model with the data. D) Conduct prediction and policy analysis. E) Develop a model.