If the cost of producing a good rises for sellers, then how will this affect the market equilibrium for that good?
a. Price and quantity will both fall.
b. Price will fall and quantity will rise.
c. Price will rise and quantity will fall.
d. Price and quantity will both rise.
c
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The Fed has announced that its views its long term target for the inflation rate as:
A. 5%. B. 0%. C. 2%. D. 10%.
A firm is producing 2,500 units at its optimal output, with average variable cost per unit of $4 and average fixed cost per unit of $2.50. If sells its output at $8 per unit, total profit is
A. $10,000. B. $3,750. C. $1,500. D. $20,000
The main reason that the deficit grows in a recession is that
a. the government reacts quickly and adjusts taxes to compensate. b. monetary policy that targets interest rates causes the costs of borrowing to fall. c. the deficit causes the recession, and reducing the deficit cures the recession. d. many forms of taxes act as automatic stabilizers.
Demand for an input is derived from the demand for the final product.
Answer the following statement true (T) or false (F)