The Snowshoe Inn in Vermont charges $259 per room during the winter ski season and $149 during the summer months. The number of rooms available and the operating costs for the inn remain constant throughout the year. What is indicated by these prices?
A. The demand curve shifts out in the summer.
B. The demand curve shifts out during the winter months.
C. The supply curve shift in during the summer.
D. There is a decrease in demand during the winter.
Answer: B
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According to the table shown, when 5 units are produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. profits are maximized.
B. profits are positive.
C. the firm is producing less than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
Advocates of the crowding-out effect maintain that the large budget deficits during the recession of 2008-2009
a. stimulated output and employment, leading to a quicker recovery. b. will lead to a slower recovery than would have been the case if government borrowing had been more restrained. c. led to lower interest rates, stimulating private investment and consumption. d. will lead to lower future taxes and more private spending as the economy recovers.
To eliminate an inflationary gap, Keynesian theory indicates that government should
A) increase taxes. B) decrease taxes. C) increase government purchases. D) decrease government purchases. E) either a or d
Refer to the accompanying figure. If the price is $4 today and there is no change in either supply or demand, one would expect the price in the future to be:
A. less than $4. B. greater than $4. C. greater than $6. D. $4.