Refer to Figure 9.5. The firm is producing Q units. Which area represents avoidable cost?
A. ABCDE
B. EDGF
C. EDCHF
D. CHGD
C. EDCHF
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The benefit that Jack receives from consuming a pack of french fries is 10 utils. He expects a future health cost of eating french fries at 20 utils
If Jack discounts delayed utils with a weight of 1/4, should he consume french fries? Explain your answer.
According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will
A. increase real GDP without putting significant upward pressure on the price level. B. decrease real GDP. C. increase the price level with no effect on real GDP. D. increase both real GDP and the price level.
The novelty of Phillips' article was his finding of a ____ correlation between ____ and ____
a. positive; unemployment; the interest rate b. negative; inflation; the exchange rate c. negative; unemployment; inflation d. positive; the rate of growth of the money supply; inflation
Which of the following statements is not true?
A. The United States government alters how resources are allocated in the economy by taxing, spending and issuing regulations. B. The price mechanism will work best if there are a limited number of firms in each industry. C. Lack of the provision of public goods is considered a market failure. D. Not everything produced by the public sector is a public good.