The use of a backward-L shaped aggregate supply curve allows us to ________ in a way that other shapes would not.
A. deal with shifting curves
B. consider various levels of prices
C. create an equilibrium
D. consider different macroeconomic points of view
Answer: A
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Japan's trade policies with regard to rice reflect the fact that
A) japanese rice farmers have significant political power. B) Japan has a comparative advantage in rice production and therefore exports most of its rice crop. C) there would be no gains from trade available to Japan if it engaged in free trade in rice. D) there are gains from trade that Japan captures by engaging in free trade in rice. E) Japan imports most of the rice consumed in the country.
As a table manufacturing company produces more tables, the average total cost of each table produced increases. This could be because:
a. Total fixed costs are decreasing as more tables are produced b. There are economies of scale c. There are diseconomies of scale d. Total variable cost is decreasing as more tables are produced.
. The quantity at which quantity demanded and quantity supplied are equal for a certain price level is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.
Luis operates a cherry orchard in Northern Oregon and sells the cherries in a perfectly competitive market at a price of $1.70 per pound. Last month Luis sold 2,000 pounds of cherries. His fixed cost of production was $800 and his average variable cost was $1.00 per pound. What was his profit?
a. $600 b. $800 c. $2,600 d. $3,400