Along its long-run average total cost curve, a firm employs
a. a different amount of fixed inputs at each point
b. the same amount of fixed inputs at each point
c. a declining amount of fixed inputs at each point as it moves to higher output levels
d. an increasing amount of fixed inputs at each point as it moves to higher output levels
e. no fixed inputs
E
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You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that
A) there might be false causality between inflation and the interest rate. B) higher inflation rates must cause a higher interest rate. C) a scatter diagram of the inflation rate and the interest rate will show a positive relationshi
If Japan imposes a quota on imports of rice, the effect will be
a. less rice and higher price in Japan, lower rice prices in exporting countries. b. more rice and higher price in Japan, higher rice prices in exporting countries. c. less rice and lower price in Japan, higher rice prices in exporting countries. d. more rice and lower price in Japan, lower rice prices in exporting countries. e. less rice and higher price in Japan, higher rice prices in exporting countries.
Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The amount of revenue government will collect from this tax is equal to the:
A. area of the triangle bcd. B. area of the triangle abc. C. amount of the per-unit tax multiplied by Q1. D. amount of the per-unit tax multiplied by Q2.
Refer to the figure. Which change would be consistent with an attempt by the Federal Reserve to rein in inflation?
A. Shifting Sf1 to Sf2
B. Shifting Sf4 to Sf3
C. Shifting Sf3 to Sf1
D. Shifting Sf4 to Sf2