One method of setting price using the cost-plus method is to add
A) a given percentage of marginal cost to marginal cost of production.
B) a given percentage of fixed cost to total fixed cost.
C) a given percentage of average variable cost to average total cost.
D) a given percentage of average total cost to average total cost.
D
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To find the market demand curve for in-line skates, we must
A) add the quantities demanded at every price and every income by every buyer of in-line skates. B) add the quantities demanded at prices that all buyers can afford to pay. C) take account of the skate buying plans of all actual and potential buyers in all possible situations. D) sum horizontally the individual demand curves of all the buyers. E) None of the above answers is correct because we need also to take account of the supply of in-line skates.
Milton Friedman and Anna Jacobson Schwartz stated that
A. changes in the behavior of the money stock have been closely associated with changes in economic activity, money income, and prices. B. the basic problem during recession is inadequate aggregate demand. C. the capitalist system is inherently unstable; it tends toward cycles of overproduction and recessions. D. the only way to stabilize the economy is through very forceful fiscal policy.
If the nominal interest rate is 3% and the inflation rate is 6%, the real interest rate is
a. 2% b. 3% c. -3% d. 9%
A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied
a. True b. False Indicate whether the statement is true or false