Refer to the graph below. At output level H, the area:
A. 0CGH represents the firm's total cost of production
B. ACGE represents the firm's economic profit
C. 0AEH represents the firm's economic profit
D. BCGF represents the firm's fixed cost of production
D. BCGF represents the firm's fixed cost of production
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Refer to Figure 29-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) A to D. B) D to C. C) B to C. D) B to A.
The main international repercussion of either a fiscal expansion or monetary contraction is to
A. raise interest rates and the exchange rate, thereby crowding out net exports. B. raise interest rates and lower the exchange rate, thereby crowding in net exports. C. lower interest rates and the exchange rate, thereby crowding in net exports. D. lower interest rates and raise the exchange rate, thereby crowding out net exports.
The value of money falls. This might be because the Federal Reserve
a. bought bonds, which increased the money supply. b. bought bonds, which decreased the money supply. c. sold bonds, which increased the money supply. d. sold bonds, which decreased the money supply.
A bank will charge a higher interest rate the:
A. longer is the length of the loan, and the lower the risk of repayment. B. shorter is the length of the loan, and the lower the risk of repayment. C. shorter is the length of the loan, and the higher the risk of repayment. D. longer is the length of the loan, and the higher the risk of repayment.