Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are:
A. $500.
B. $50.
C. $5,000.
D. $.50.
Answer: C
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Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect
A) prices to increase by a little immediately and profits to decrease by a lot. B) there will be some increase in price but not immediately. C) no increase in price. D) a quick increase in price maintains profits in the industry.
Herbert Simon, one of the first social scientists to combine the study of economics and psychology, suggested that humans should be viewed as
a. rational maximizers. b. satisficers. c. independent thinkers. d. signalers.
Which of the following equations will always represent GDP in an open economy?
a. S = I - G b. I = Y - C + G c. Y = C + I + G d. Y = C + I + G + NX
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D. B. A + B + C + D + E + F + J + I. C. A + B + C + D + E + F. D. D.