The firm whose short-run cost curves are given in Exhibi has a long-run fixed cost of
A. $0.
B. $2.
C. $3.
D. $4.
Answer: A
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If a government price control succeeds in affecting price, it can be expected to lead to a corresponding
a. decrease in the quantity of sales only if the price is forced down. b. decrease in the quantity of sales if the price is forced down and an increase in the volume of sales if the price is forced up. c. decrease in the quantity of sales whether the price is forced up or down. d. increase in the quantity of sales whether the price is forced up or down.
Describe three factors that have led to the recent push toward globalization
Consumer confidence affects the final price level of an expansionary policy. In this graph, what is the difference in price level between consumer confidence increasing and consumer confidence not increasing?
a. PL2 for consumer confidence increasing; PL1 for consumer confidence not increasing
b. PL1 for consumer confidence increasing; PL2 for consumer confidence not increasing.
c. PL4 for consumer confidence increasing; PL2 for consumer confidence not increasing
d. PL3 for consumer confidence increasing; PL4 for consumer confidence not increasing
A price index based upon the items purchased by firms is the
A. CPI. B. core PCE. C. Producer Price Index. D. PCE.