All else equal, more investment takes place at
A. lower market interest rates.
B. higher market interest rates.
C. higher real interest rates.
D. higher nominal interest.
Answer: A
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Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This firm's
A. ATC is $35.
B. ATC is $57.
C. total cost is $270.
D. total cost is $30.
If, during the negotiations between the union and the management, a lockout occurs, it would be because
a. The management is trying to convince the union that it would stick to its strategy b. The union believes the management's threat c. All of the above d. None of the above
If the public expects the incumbent administration to stimulate the economy shortly before an election:
a. the unemployment rate will fall at the cost of higher inflation. b. the economy will move up the short-run Phillips curve. c. lower inflation will prevail, and the rate of unemployment will remain unchanged. d. the economy will immediately move up the long-run Phillips curve. e. neither inflation nor the unemployment rate will change.
The current demand for automobiles would decrease if
a. the price of gasoline fell. b. consumer income rose. c. consumers suddenly believed the price of automobiles would be sharply lower in the near future. d. consumers suddenly believed the price of automobiles would be sharply higher in the near future.