What is meant by variable cost? What kinds of things might be included in variable cost?
What will be an ideal response?
Variable cost is a cost that depends on the level of production chosen. Examples would include the costs of materials, hourly labor, and electricity.
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Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. If the economy's current aggregate demand curve is AD0, it would be appropriate for the government to
A. reduce unemployment compensation benefits. B. reduce government purchases or increase taxes. C. increase government purchases or reduce taxes. D. reduce government purchases and taxes by equal-size amounts.
Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
Who among the following is speculating?
A) The economics department that offers its first online principles course B) The bookstore that buys back the Math 101 textbooks without confirmation that the department definitely plans to adopt it again next semester C) The resident hall advisor who purchases party favors for the end-of-semester bash D) All of the above. E) B and C above.
The demand curve for federal funds is ________.
A. vertical B. upward-sloping C. downward-sloping D. horizontal