The term Production Function refers to the A) use of machinery and equipment in production. B) relationship between costs and output. C) relationship between inputs and output. D) role of labor unions. ANSWER C
Date: September 9th, 2020
If banks face a problem in loan markets when bad credit risks are the ones most likely to seek bank loans, it is described as A) moral hazard. B) moral suasion. C) adverse selection. D) fraud. ANSWER C
Date: September 9th, 2020
The production period in which at least one input is fixed in quantity is the A) production run. B) long run. C) short run. D) planning horizon. ANSWER C
Date: September 9th, 2020
The difference between the short-run and the long-run is A) three months, or one business quarter. B) the time it takes for firms to change all inputs in the production process. C) the time it takes for firms to change only their variable inputs. D) More information is required to answer this question. ANSWER […]
Date: September 9th, 2020
The above figure shows the cost curves for a competitive firm. The firm will incur economic losses if the price is less than A) $0. B) $5. C) $10. D) $11. ANSWER C
Date: September 9th, 2020
John takes out a student loan at a bank but spends his money in Las Vegas to play at the casino. This situation is an example of A) moral hazard. B) moral suasion. C) adverse selection. D) fraud. ANSWER A
Date: September 9th, 2020
According to the principal of comparative advantage a country A) that produces goods at the lowest absolute cost will export those goods. B) will import goods it can produce at the lowest relative cost. C) will export goods it can produce at the lowest relative cost. D) will only import those goods that it cannot […]
Date: September 9th, 2020
Production of a good produces pollution that is very damaging with each additional unit. A monopoly facing a very elastic demand curve will most likely produce A) less than the social optimum of the good. B) more than the social optimum of the good. C) the social optimum of the good. D) no externality. […]
Date: September 9th, 2020
What are the four different characteristics that data exhibit when undertaking time-series forecasts? What will be an ideal response? ANSWER Trend; Cyclical Fluctuations; Seasonal Variation; Irregular Movements
Date: September 9th, 2020
The song “Happy Birthday” is likely protected A) as a trade secret. B) with a patent. C) under copyright law. D) in a trust. ANSWER C
Date: September 9th, 2020
