For most firms, the costs of energy and raw materials will be total fixed costs
a. True
b. False
Indicate whether the statement is true or false
False
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If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs
A) leftward; economic growth B) leftward; inflation C) rightward; economic growth D) rightward; inflation
The central bank of Vervia buys and sells government bonds to alter the level of money supply in the country. This method of controlling the money supply is known as: a. crowding out
b. forward guidance. c. open market operations. d. quantitative easing.
When risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual, it is called:
A. diversification. B. risk analysis. C. risk aversion. D. risk pooling.
A firm produces a good and generates $6 million in receipts. Wages are $1 million, rent is $500,000, and interest payments are $1 million. Then
A. profits are $3.5 million, the cost of production is $6 million, and households receive income equal to $6 million. B. profits are $500,000, the cost of production is $5 million, and households receive income equal to $4.5 million. C. profits are $1.5 million, the cost of production is $6 million, and households receive income equal to $2.5 million. D. profits are $500,000, the cost of production is $2.5 million, and households receive income equal to $4.5 million.