What does this equation represent? $2,000 for monthly rent and equipment leases / 400 units of output = $5
a. average variable cost
b. average fixed cost
c. diminishing marginal cost
d. total average cost
b. average fixed cost
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Suppose the government has imposed a price ceiling on laptop computers. Which of the following events could transform the price ceiling from one that is not binding into one that is binding?
a. Improvements in production technology reduce the costs of producing laptop computers. b. The number of firms selling laptop computers decreases. c. Consumers' income decreases, and laptop computers are a normal good. d. The number of consumers buying laptop computers decreases.
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. The line segment ________ represents Jerry's consumption when income equals zero.
A. BC B. DA C. BD D. BA
General sources of shocks that can cause business cycles include the following, except:
A. Irregular occurrence of innovations and productivity changes B. Monetary factors and financial instability C. Unemployment jumps and production drops D. Political events, either domestic or global
Which condition would generate a violation of the Ricardian Equivalence?
A) downward sloping labor supply curve B) underdeveloped credit markets C) inflationary monetary policy D) deflationary monetary policy