Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital). In the short run, Christine most likely considers
a. both labor and capital to be fixed.
b. both labor and capital to be variable.
c. capital to be variable and labor to be fixed.
d. labor to be variable and capital to be fixed.
d
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An item's ability to serve as money does not depend on its own market value or _______________
Fill in the blank(s) with the appropriate word(s).
In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will decrease production by
A) zero. B) 2 units per day. C) 4 units per day. D) 6 units per day.
The dominant school of economic thought until midway through the Great Depression of the 1930s was:
a. classical. b. Keynesian. c. monetarism. d. supply-side. e. rational expectations.
A temporary decline in productivity would cause the IS curve to
A. shift up and to the right. B. shift down and to the left. C. remain unchanged. D. shift up and to the right only if people face borrowing constraints.