Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?
A. $300
B. $305
C. $500
D. $800
Answer: D
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The impact of one person's actions on the well-being of a bystander is called
a. an economic dilemma. b. deadweight loss. c. a multi-party problem. d. an externality.
If monetary neutrality holds, then an increase in the money supply
a. increases real but not nominal variables. Most economists think that monetary neutrality is a good description of the short run. b. increases real but not nominal variables. Most economists think that monetary neutrality is a good description of the long run. c. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the short run. d. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the long run.
Which of the following is not a reason economies experience structural unemployment?
a. job search b. unions c. minimum-wage laws d. efficiency wages
Assume that the size of the underground economy increases both absolutely and relatively over time. As a result:
a) real GDP will rise more rapidly than nominal GDP. b) GDP will tend to increasingly understate the level of output through time. c) GDP will tend to increasingly overstate the level of output through time. d) the accuracy of GDP will be unaffected through time.