The table below shows cost data for a firm that is selling in a purely competitive market.OutputAverage Variable CostAverage Total CostMarginal Cost10$5.00$15.00$3124.0013.004144.7511.506165.759.009209.0012.0014Refer to the above cost chart. Which output level will the firm never produce?
A. 10
B. 20
C. 12
D. 16
Answer: A
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The unemployment rate is usually zero except during recessions
a. True b. False
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Changes in government spending and tax revenues for the purpose of achieving a full-employment and noninflationary level of domestic output is called:
A. monetary policy. B. fiscal policy. C. industrial policy. D. trade policy.
Which of the following holds that business cycles are primarily due to changes in technology and does NOT invoke any monetary or demand-side forces?
A. the real business cycle theory B. adaptive expectations hypothesis C. rational expectations hypothesis D. the efficiency wage theory