According to Figure 17.7, a shift in the long-run aggregate supply from LRAS1 to LRAS2 would most likely result from
A. An increase in the money supply.
B. A decrease in transfer payments.
C. An increase in labor skills.
D. An increase in government spending.
Answer: C
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Which of the following statements about the marginal rate of substitution is NOT correct?
A) It measures the number of units of the good on the horizontal axis that a consumer must be compensated with to give up a unit of the good on the vertical axis, while remaining on the same indifference curve. B) It is measured by the slope of the indifference curve. C) It decreases in value when moving downward along a typical-shaped indifference curve. D) It is constant for goods that are perfect substitutes.
Table 7-5 Stereos produced 0 1 2 3 4 5 6 Total cost (in $) 200 325 410 475 550 660 825 Table 7-5 shows short-run total cost figures for a stereo manufacturer. At what output level does short-run average total cost reach a minimum?
A. 2 B. 3 C. 4 D. 5
A coupon bond is a bond that:
A. pays the owner the sum of the coupons at the bond's maturity. B. always sells at a price that is less than the face value. C. provides the owner with regular payments. D. pays a variable coupon rate depending on the bond's price.
Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. What is the marginal cost of the 19th sweater?
A) $40.00 B) $20.00 C) $10.00 D) $8.00