A firm's ______ are costs that increase as quantity produced increases. These costs often show ______ illustrated by the increasingly steeper slope of the total cost curve.
A. fixed costs; opportunity costs
B. variable costs; diminishing marginal returns
C. fixed costs; technological changes
D. variable costs; constant returns to scale
Answer: B. variable costs; diminishing marginal returns
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In equilibrium, the real value of household income must equal
A) the real value of output produced by firms. B) the real value of all expenditures. C) the sum of all goods produced in a year. D) net GDP.
In an unregulated, competitive market we could calculate consumer surplus if we knew the equations representing supply and demand. For this problem assume that supply and demand are as follows: Supply P = 4 + 0.116Q Demand P = 25 - 0
10Q, where P represents unit price in dollars and Q represents number of units sold each year. Calculate the annual value of aggregate consumer surplus.
An increase in planned investment will shift the _____
a. aggregate demand curve rightward b. aggregate demand curve leftward c. aggregate supply curve rightward d. aggregate supply curve leftward e. consumption function upward
An increase in oil prices will shift the aggregate:
a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.