Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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Which of the following statements best describes a production function?
A) the maximum profit generated from given levels of inputs B) the maximum level of output generated from given levels of inputs C) all levels of output that can be generated from given levels of inputs D) all levels of inputs that could produce a given level of output
Which of the following is a range on the eclectic or general view of the aggregate supply curve?
a. Keynesian range. b. Intermediate range. c. Classical range. d. All of these.
If airlines give passengers under the age of 10 a 25% discount, then this is an example of price discrimination.
Answer the following statement true (T) or false (F)
All of the following are reasons for economies of scale EXCEPT
A. specialization. B. dimensional factors. C. diminishing marginal product. D. more efficient production equipment.