In the short run, when production goes up what typically happens to total variable costs?
What will be an ideal response?
In order for the firm to produce more output it will hire more variable inputs like labor and raw materials. This will drive up its total variable costs
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Refer to the scenario above. The price of a basket of goods worth $1 in the U.S. is ________ in Country 1
A) 50 karls B) 5 karls C) 20 karls D) 25 karls
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be increased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false
Suppose that during World War II the long-run aggregate supply curve shifted right. In order for price and output to have changed in the direction they did, what would have to have happened to aggregate demand?
a. It would have to have shifted left by less than aggregate supply shifted b. It would have to have to shifted left by more than aggregate supply shifted. c. It would have to have shifted right by less than aggregate supply shifted d. It would have to have to shifted right by more than aggregate supply shifted.
Who makes decisions and trade-offs in the face of scarce resources?
A. Governments B. Individuals C. Businesses D. All of these are correct.