If you operated a small bakery, which of the following would be a variable cost in the short run?
A. Annual lease payment for use of the building
B. Interest on business loans
C. Baking ovens
D. Baking supplies (flour, salt, etc.)
Answer: D
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At the end points on a budget line, the consumer is not spending all of his budget, since one of the goods is not being purchased.
Answer the following statement true (T) or false (F)
Market specialization and the rise of the division of labor
A) create important conditions for economic growth. B) help explain why some nations are wealthier than others. C) do both of the above. D) do neither of the above.
Workers at a local mining company are paid $25.60 per hour, and they have incorporated a 3 percent annual raise in their contracts to account for expected inflation
Explain how unexpected inflation of 5 percent will affect the real wage and the unemployment rate.
The short-run aggregate supply curve in modern Keynesian analysis
A) is a horizontal line the same as in the Keynesian model. B) is a vertical line the same as in the classical model. C) is an upward sloping curve. D) is a negatively sloped curve.