A variable factor of production:
A. plays no role in the law of diminishing marginal returns.
B. is variable only in the short run.
C. is fixed in the long run but variable in the short run.
D. is variable in both the short run and the long run.
Answer: D
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A group of producers who join forces to buy supplies and equipment and to market their output is a(n) ______
A) not-for-profit organization. B) S corporation. C) producer cooperative. D) sole proprietorship. E) cottage industry.
The annuity factor ________ by the amount of the annual payment equals the ________ value of payments for the specified number of years at the specified discount rate.
A) multiplied; future B) divided; present C) divided; future D) multiplied; present
Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?
a. $120 million b. $270 million c. $1.02 billion d. $970 million
The crowding-out effect is likely to be the strongest during periods of
a. recession. b. large budget surpluses. c. high employment. d. expanding money supply.