Question 1. Which of the following describes the short-run time

Question
1. Which of the following describes the short-run time production period?
a. Firms can vary only one of the inputs in the production process.

b. Firms can vary all inputs into the production process.

c. Firms cannot vary any of the inputs into the production process.

d. Firms can choose to go out of business.

2. Which statement about the loanable funds market is NOT correct?

a. The market suppliers are the savers and the buyers are the borrowers.

b. The price of loanable funds is the real interest rate.

c. Loanable funds are provided by savers to borrowers to spend on investment goods and services.

d. The loanable funds theory describes changes in short-term interest rates.

3. Select the correct statement about fiat money.

a. Fiat money is tied to a fixed quantity of gold and therefore protects against inflation.

b. Fiat money eliminates the need for monetary policy and the Federal Reserve’s role in managing the money supply.

c. All fiat money is a type of soft currency that trades only within the issuing country.

d. The U.S. dollar is fiat money.

4. A price ceiling on items like apartment rents or meat is likely to lead to

a. Supply exceeding demand.

b. An increase in production.

c. Demand exceeding supply.

d. A decrease in demand.

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