The long-run aggregate supply curve:
A. never moves.
B. shifts right when the economy experiences economic growth.
C. shifts left when the economy experiences economic growth.
D. is affected by the price level.
Answer: B
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When Mother Teresa used her $190,000 Nobel Peace Prize to construct a leprosarium, she was
A) behaving irrationally. B) behaving selfishly. C) not behaving in a truly voluntary way. D) pursuing her self interest. E) violating the fundamental laws of economics.
Which one of the following variables is most likely to increase as production effort is increased?
a. Net revenue b. Marginal costs c. Marginal revenue d. Total costs e. Average revenue
Suppose you are deciding whether or not to increase production. You are making a loss with many competitors. If you produce one more unit, your increase in cost will be $10, your average variable costs will increase to $9.50, and your average fixed costs will decrease. Finally, the price you are able to charge will be $9.75. You should
A. increase production by exactly 1 unit. B. increase production by at least 1 unit. C. leave production unchanged because profit is maximized where you are. D. shut down.
Which of the followings is a duty of the Board of Governors of the Federal Reserve System?
A) setting margin requirements, the fraction of the purchase price of the securities that has to be paid for with cash B) setting the maximum interest rates payable on certain types of time deposits under Regulation Q C) regulating credit with the approval of the president under the Credit Control Act of 1969 D) All governors advise the president of the United States on economic policy.