What are variable costs?
a. costs that change with the level of output
b. costs that do not change when output rises
c. costs that rise when output decreases
d. costs that do not affect long-run average total cost
a. costs that change with the level of output
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Which of the following is a potential solution to help low-income countries reduce their greenhouse gas emission?
a. The European Union relaxing strict guidelines for low-income countries’ emissions b. Reducing the emissions allowed by high-income countries c. High-income countries paying for some of the costs associated with reducing the emissions d. Imposing new, stricter emissions guidelines for low-income countries
During the American Revolution, Washington's army nearly starved to death after price controls were enacted to "help" buy food for the army at affordable prices. The Continental Congress later passed a law which
a. exhorted the public to obey the law and help supply food to the army. b. passed tax increases to punish those who refused to sell the food. c. revised the American Law of Supply and Demand. d. overrode local ordinances and essentially repealed the price controls. e. called for the repeal of other price control measures.
How does aggregate demand (AD) curve differ from an individual demand curve (D)?
A. D represents the price-quantity relationship for a single good or service while AD looks at the entire economic system. B. AD is generally vertical while D is usually downward sloping. C. AD is generally a downward sloping curve while D usually slopes upward. D. Look for D in macroeconomic analyses and for AD in microeconomics.
An increase in interest rates
A) decreases investment spending on machinery, equipment, and factories, but increases consumption spending on durable goods and net exports. B) decreases investment spending on machinery, equipment, and factories, and consumption spending on durable goods, but increases net exports. C) decreases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports. D) increases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports.