Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is most likely to occur, ceteris paribus?
A. The firm will shut down in the short run.
B. The firm will increase output.
C. The firm will exit in the long run.
D. The firm will raise its price.
Answer: C
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Cost-push inflation is to ________ as demand-pull inflation is to ________
A) impatience; inaccuracy B) entering; exiting C) activism; nonactivism D) fiscal; monetary E) none of the above
Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes. b. An increase in interest rates c. A decrease in permanent disposable income. d. An increase in wealth. e. An increase in savings.
If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $90
a. True b. False Indicate whether the statement is true or false
Which of the following would be an example of a fixed cost to a firm?
A. wages for the laborers B. electricity and other fuel costs C. rent for the building it occupies D. the cost of raw materials