If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be
a. $40.
b. $60.
c. $6,000.
d. $8,000.
C
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One criticism of the unemployment rate is that it
A) is a stock measure. B) does not include people who are not working and are not looking for work. C) does not include the number of discouraged workers as unemployed. D) counts a new entrant that is actively seeking work as unemployed.
When a Japanese resident buys a good or service from a U.S. producer, there is a(n)
A) increase in the supply of yen in the foreign exchange market. B) decrease in the supply of yen in the foreign exchange market. C) increase in the demand for yen in the foreign exchange market. D) decrease in the demand for yen in the foreign exchange market.
The Fed sometimes acts as a lender of last resort. This means that
a. individuals can borrow from the Fed when the President declares a national disaster b. individuals can try to borrow money from the Fed if they are unable to borrow from a bank c. banks can always go to the Fed for reserves in order to purchase more government bonds d. banks can always go to the Fed for reserves to meet their obligations to depositors e. business firms can try to borrow money from the Fed they are unable to borrow from a bank
Give an example that shows price elasticity of supply. Avoid using examples from the text.
What will be an ideal response?