Characteristics of the short run include:
a. at least one fixed input
b. insufficient time for firms to enter or leave the industry in question.
c. the applicability of the law of diminishing marginal product.
d. all of the above.
d
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Suppose that in an hour you can either make 20 tortillas or word-process 5 pages of text, while in an hour your roommate can either make 15 tortillas or word-process 15 pages of text. Which of the following is correct?
a. Your comparative advantage is in making tortillas. b. Your roommate's comparative advantage is making tortillas. c. Your roommate has an absolute advantage in both tasks. d. You have an absolute advantage in both tasks.
The total volume of business sales in our economy is several times larger than GDP because ________.
A. GDP does not take taxes into account B. GDP grossly understates the value of our annual output C. GDP excludes intermediate transactions D. Total sales are in money terms and GDP is always stated in real terms