The maximum price that consumers are willing to pay for the hundredth unit of a good can be found as
a. the height of the supply curve at a quantity of 100.
b. the height of the demand curve at a quantity of 100.
c. the difference between the height of the supply and demand curves at a quantity of 100.
d. none of the above.
B
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With total fixed cost of $400, a firm incurs an average total cost of $3 and average variable cost of $2.50. The amount of output produced by the firm must be
A. 800 units. B. 1,600 units. C. 400 units. D. 200 units.
An income tax hike
A) increases potential GDP. B) increases employment. C) decreases potential GDP. D) Both answers A and B are correct. E) Both answers B and C are correct.
Which of the following statements best describes a price ceiling?
(a) The maximum price that consumers will pay for a product/service. (b) A price ceiling will cause an excess demand for a good/service. (c) A price lower than the market equilibrium price. (d) All of the above.
GDP can be calculated by all of the following methods except
A. Adding up the spending on goods and services by business, government, households, and foreigners, and subtracting imports. B. Adding up all income and expenses by consumers and businesses. C. Adding up all of the receipts of households, government, and business. D. Adding up the "value added" at every stage of production in the economy.