If your cumulative Grade Point Average (GPA) after two years of college is 3.0, and your grades for the current semester average 3.5, what will happen to your cumulative GPA? Explain the similarity of this example to the case of marginal cost and average cost
If the current semester's GPA is above the cumulative, then the cumulative GPA will rise. By the same token, if the firm's marginal cost is above the average cost, the average cost will rise-and if MC is below AC, the latter will be falling.
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An economic explanation for why rock concert tickets sell at prices below the market equilibrium is that musicians
a. are not greedy. b. want to reward their loyal fans. c. expect that younger people, who will spend more on merchandise at the concert, are more willing to wait in long lines to buy tickets than adults. d. expect that those who are more willing to wait in long lines to buy tickets will make a more receptive audience than those who are willing to pay a higher price.
In 2009, the American Recovery and Reinvestment Act (ARRA) was an example of:
A. budget surplus. B. fiscal restraint. C. fiscal stimulus. D. net exporting.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Using Figure 1.5, if an economy has the capacity to produce represented by PP2, then point E represents
A. A combination of potato chips and doughnuts that is not attainable. B. A constant trade-off between potato chips and doughnuts. C. An efficient use of resources. D. None of the choices are correct.