Exhibit 10-8 Aggregate demand and supply
In Exhibit 10-8, when aggregate demand shifts from AD4 to AD5, the economy experiences:
A. cost-push inflation.
B. cost-pull inflation.
C. demand-push inflation.
D. demand-pull inflation.
Answer: D
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Rules used to predict movements in stock prices based on past patterns are, according to the efficient markets hypothesis
A) a waste of time. B) profitably employed by all financial analysts. C) the most efficient rules to employ. D) consistent with the random walk hypothesis.
When all prices are set equal to marginal costs,
A. consumers buy more than they should. B. consumers will get less utility. C. markets are giving correct signals to consumers. D. producers make excessive profits.
Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. If she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. What is Susan's opportunity cost of attending college next year?
A) $5,500 B) $3,000 C) $25,500 D) $3,500
Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the total variable cost is:
A. $2,800. B. $4,000. C. $4,500. D. $6,300.