The average total cost curve
a. is downward sloping at all levels of output
b. is downward sloping when marginal costs are decreasing and upward sloping when marginal costs are increasing
c. is upward sloping when marginal costs are decreasing and downward sloping when marginal costs are increasing
d. does not vary with output
b
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The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises
A) the demand curve shifts rightward. B) the demand curve shifts leftward. C) there is a movement down along the demand curve to a larger quantity demanded. D) there is a movement up along the demand curve to a smaller quantity demanded.
The short-run Phillips curve is based on the assumption of: a. a direct relationship between the inflation rate and unemployment. b. an inverse relationship between the inflation rate and unemployment. c. no relationship between the inflation rate and unemployment
d. a permanent trade-off between the inflation rate and unemployment.
Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is measured by the
a. consumer's income divided by the price of crackers. b. relative price of peanuts and crackers. c. consumer's marginal rate of substitution. d. number of peanuts purchased divided by the number of crackers purchased.
The rising minimum wage allegedly has reduced the quantity demanded of teenage labor. However, demographics slightly reduced the supply of teenage labor. The U.S. Department of Labor reported that teenage unemployment is an increasing problem. Which graph in Figure 4-10 is consistent with these facts?
a.
1
b.
2
c.
3
d.
4
Figure 4-10
