Consider the following statements when answering this question
I. If the cost of producing each unit of output falls $5, then the short-run market price falls $5.
II. If the cost of producing each unit of output falls $5, then the long-run market price falls $5.
A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.
C
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The ratio of consumption to income is known as ________
A) the average propensity to consume B) the borrowing constraint C) the marginal propensity to consume D) subprime accommodation
If the Habakkuk thesis had been correct—unamended by Rosenberg, David and others—a long-run decline in the supply of agricultural productivity west of the Appalachians would be matched by a proportional
(a) decline in the productivity growth in eastern manufacturing. (b) increase in productivity in eastern manufacturing. (c) rise in American food imports. (d) rise in American exports of manufacturing.