Chloe's Café sells gourmet cinnamon rolls. In the long run, the café incurs a total cost of $500 to produce 1,000 cinnamon rolls. If Chloe's Café exhibits economies of scale between 1,000 and 2,000 cinnamon rolls, the long-run average total cost for 1,500 cinnamon rolls is
a. higher than $0.50.
b. lower than $0.50
c. equal to $0.50.
d. higher than $500.
b
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Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400 . The deadweight loss of the tax is
a. $200. b. $400. c. $600. d. $1,200.
Which group of U.S. citizens competes with illegal immigrants in the United States?
a. medical doctors b. high school dropouts c. college graduates d. all U.S. citizens
Answer the following statement(s) true (T) or false (F)
1. The expenditure multiplier can be negative. 2. As the price level decreases, the level of aggregate expenditure remains constant. 3. As aggregate expenditure increases, the aggregate demand curve shifts right. 4. The aggregate expenditure model can explain cost-push inflation. 5. The aggregate expenditure model allows for the economy to self-correct.
International trade is the major cause of rising income inequality in the United States
Indicate whether the statement is true or false