For most producing firms:
A. marginal cost rises as output is carried to a certain level, and then begins to decline.
B. total costs rise as output is carried to a certain level, and then begin to decline.
C. average total costs rise as output is carried to a certain level, and then begin to decline.
D. average total costs decline as output is carried to a certain level, and then begin to rise.
Answer: D
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To measure GDP using the expenditure approach you must collect data on
A) inflation. B) exports. C) wages. D) saving.
Which of the following would be a useful way to increase the saving rate?
A) Tax breaks to increase the real return that savers receive B) Increasing taxes if Ricardian equivalence holds C) Increasing government spending D) Increasing taxes on capital goods
If consumption increases in general the aggregate demand curve will:
A. remain unchanged but the economy will move down along the curve to a lower quantity. B. shift straight down. C. remain unchanged but the economy will move down along the curve to a higher quantity. D. shift to the right.
Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. How much total tax revenue is raised by the tax?
A. $2 B. $20 C. $32 D. $40