When the average total cost is rising, it must be the case that
a. production must be cut back
b. fixed cost is not very high
c. marginal cost is greater than average total cost
d. average fixed cost exceeds average variable cost
e. marginal cost is less than average fixed cost
C
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An inflationary gap is occurs when
A) real GDP is less than potential GDP. B) real GDP exceeds potential GDP. C) real GDP equals potential GDP. D) the economy is at full employment.
It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find
a. it more attractive to raise taxes than to increase spending. b. it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion. c. budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion. d. budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.
Why do the airlines charge less for passengers who stay over Saturday night and purchase their tickets two weeks in advance?
Which of the following conditions makes it most likely for a quota to be imposed?
A) The benefits of the quota are spread over many and the costs are concentrated on a few. B) The benefits of the quota are spread over many and the costs are spread over many. C) The benefits of the quota are spread over few and the costs are spread over many. D) The benefits of the quota are spread over few and the costs are spread over few. E) There is not enough information to answer the question.