Which of the following shocks is most likely to cause an expansion?
a. Defense spending falls
b. Defense spending rises
c. Defense spending rises and then falls
d. Oil prices surge upward
e. Oil prices rise slowly
B
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In the 1970s we had _____ recessions and in the 1980s we had _____ recessions.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT an example of an opportunity cost?
A) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. C) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. D) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition. B) the outcome is always a monopoly equilibrium. C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits. D) a firm that enters the market first is protected from potential entrants by natural barriers.
The Blue Ridge Furniture Factory has fixed costs of $10 million and variable costs of $5 million. If it turns out 1 million chairs a year, how much is the average total cost of producing one chair?
What will be an ideal response?