Variable costs:
A. do not vary with output.
B. are positive even when a firm produces no output.
C. change as output changes.
D. exist only in the short run.
Answer: C
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If government expenditures are increased by $50 billion, assuming all other factors stay constant, we would expect real GDP in the long run to
A. increase by more than $50 billion. B. stay constant. C. increase by $50 billion. D. increase by less than $50 billion.
The total revenue curve of a monopolist:
A) is positively sloped when marginal revenue is negative. B) is negatively sloped when marginal revenue is negative. C) is positively sloped when the marginal revenue curve is upward sloping. D) is negatively sloped when the marginal revenue curve is downward sloping.
There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream
In the market for ice cream, the effects these changes will have on equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.
Suppose that 2 per cent of the employed lose their jobs each month (s = 0.02) and 38 per cent of the unemployed find a job each month (f = 0.38). Then, the steady-state rate of unemployment is:
A. 2 percent. B. 5 per cent. C. 16 per cent. D. 36 per cent.