If policymakers are not aggressive about keeping inflation close to the target rate, the slope of the monetary policy reaction curve would be:
A. horizontal.
B. steep.
C. negative.
D. relatively flat.
Answer: D
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In the above figure, the slope at point b is
A) 1. B) 5/2. C) between 1 and 5/2. D) greater than 5/2.
Refer to Figure 9-4. Under autarky, the consumer surplus is area
A) R + S + V. B) S. C) R. D) S + V.
If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:
a. $40. b. $60. c. $6,000. d. $8,000.
A physician's office expenses increase by 10 percent, so the doctor decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue rise if demand is inelastic. b. Office visits and total revenue stay the same if demand is elastic. c. Office visits will fall and total revenue will rise if demand is inelastic. d. Office visits will rise and total revenue will fall if demand is elastic. e. Office visits and total revenue fall if demand is inelastic.