Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q ________ has a higher fixed cost and ________ has a higher marginal cost.
A. Mega Corp; Big Inc
B. Big Inc; Big Inc
C. Mega Corp; Mega Corp
D. Big Inc; Mega Corp
Answer: A
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The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called
A) the employment curve. B) the aggregate demand curve. C) the price level curve. D) the aggregate supply curve.
The Federal Reserve uses open market operations rather than changes in legal reserve requirements as its principal tool of monetary management because changes in legal reserve requirements
A) can be easily evaded by commercial banks. B) must secure Congressional approval. C) would be excessively powerful and disruptive. D) would be less profitable for the Federal Reserve Banks.
By how much did real GDP decline between 1929 and 1933?
A) 18% B) 20% C) 27% D) 81%
Studies at Cornell University revealed that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop. Resultant feed savings are estimated at $60 million a year. In the chicken market, the
a. demand curve shifts to the right. b. supply curve shifts to the right. c. price will rise. d. quantity sold will fall.