Adam Smith's diamond-water puzzle
a. can be resolved by distinguishing between marginal and total utility.
b. occurs because diamonds have no utility.
c. occurs because scarcity increases total utility.
d. will likely never be resolved with existing economic tools.
a
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Which is not a cause for business cycles considered by macroeconomists?
A) shocks to money supply B) greed C) shocks to technological ability D) variations in optimism
The long run is referred to as a planning horizon because:
a. the firm has committed to a fixed quantity of at least one resource and the other resources are variable. b. the manager has selected the size of the firm that appears to be the least profitable and does not have the option of selecting any other plant size. c. the firm has not committed to a fixed quantity of any resource and has all options available to it. d. the manager has selected a scale of production. e. the firm is operating along a specific average-cost curve.