You operate a factory that produces beach towels. Your current level of output equals 2,000 towels per week. Your weekly variable cost equals $8,000 . If your total cost each week equals $9,000 . it follows that:
a. the average variable cost of production equals $2 per towel.
b. the average variable cost of production equals $4 per towel.
c. the average total cost of production equals $8 per towel.
d. none of the above
b
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Unemployment rates in many continental European countries have been consistently higher compared to the United States. The difference is mostly
a. due to differing monetary policies b. cyclical unemployment c. frictional unemployment d. structural unemployment e. seasonal unemployment
If the federal government has a deficit, and the current account is in balance, then
a. I = S. b. I > S. c. S > I. d. S + I = 0.
The tendency for expansionary fiscal policy to cause a reduction in planned real investment spending by the private sector is called
A. the indirect effect. B. the Laffer effect. C. the crowding-out effect. D. the multiplier effect.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $8.00. Tom's monthly income is
A. $2.50. B. $20. C. $80. D. $160.