The term "fixed input" refers to:
A) inputs to production that do not vary with respect to quality.
B) inputs to production that do not vary in price.
C) inputs to production that yield a constant or "fixed" marginal product.
D) inputs to production, the quantity of which cannot be varied in the short run.
D
You might also like to view...
________ is the field of study that applies concepts from social sciences such as psychology and sociology to help understand the behavior of securities prices
A) Behavioral finance B) Strategical finance C) Methodical finance D) Procedural finance
Some economists argue suddenly reducing money supply growth is a costly way to reduce inflation and that it may not work. For example, if a government cuts money growth but makes no real fiscal reforms, people will expect the government will eventually
need to expand the money supply to pay for its expenditures. Thus, the promise to fight inflation will not be credible. Explain why credibility is important to a reduction in the inflation rate.