Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have the following data: P = $20, AVC = $10, AFC = $10, and quantity of birthday cakes produced a day is 20 . You conclude that the bakery ends up at the end of the day with a
a. loss of $10
b. profit of $10
c. loss of $20
d. no loss, no profit
e. loss of $40
D
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The regulatory response to enhance accountability and increase transparency in the financial system and end taxpayer bailouts in response to the Great Recession was known as which of the following?
a. Sarbanes-Oxley Act b. Dodd-Frank Act c. Airline Deregulation Act d. Hoffman-La Roche Act
If the federal government runs a budget deficit, and the budget deficit as a percent of GDP is equal to the growth rate of real output, the
a. national debt will decrease as a share of GDP. b. national debt will remain a constant share of GDP. c. national debt will increase as a share of GDP. d. size of the national debt (in dollar value) will decline.
Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
A) The demand for digital music players is greater than the supply of digital music players. B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. C) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease. D) The shortage will cause a decrease in the equilibrium price of digital music players.
The costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation are called
A. transactions costs. B. menu costs. C. imperfect competition costs. D. shoe leather costs.