Economists who are primarily responsible for advising Congress on economic matters work in which agency?
a. the Federal Reserve
b. the Congressional Budget Office
c. the Department of the Treasury
d. the Department of Commerce
b
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The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.10 and is 1.60 other days of the year. If Rosie's Roses faces a constant marginal cost of $0.75 per rose, what is the profit-maximizing off-peak load price to charge on days not on the week of Valentine's Day?
A) $2.00 B) $5.00 C) $8.50 D) $1.25
In the short run, if the marginal cost exceeds the marginal revenue, a perfectly competitive firm should:
a. raise the level of output to maximize profit. b. keep the level of output constant. c. raise the level of output to minimize loss. d. reduce the level of output to minimize loss. e. shut down.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
Use the above figure. The economic profit for this firm is
A. the distance between T and E. B. the distance between E and x-axis. C. zero. D. the distance between T and x-axis.