Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Refer to Table 12-1. What is the fixed cost of production?
A. $500
B. $0
C. $500
D. $1,000
E. It cannot be determined
Ans: D. $1,000
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Which of the following statements is an example of the Fed's conditional commitment policy?
A) "In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period." B) "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time." C) "Policy accommodation can be removed at a pace that is likely to be measured." D) "The exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, and inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal."
To provide quantitative answers to policy questions
A) it is typically sufficient to use common sense. B) you should interview the policy makers involved. C) you should examine empirical evidence. D) is typically impossible since policy questions are not quantifiable.
The ISO 9000 family of quality management and assurance procedures improve exchangeability by lowering the cost of obtaining information about the goods to be traded and the counterparties with whom individuals might trade
Indicate whether the statement is true or false
Suppose a cup of tea costs $0.60 and a scone costs $1.20. If Edith spends all of her income on these two goods, and at her current level of consumption, she receives a marginal utility of 6 utils from the last cup of tea she buys and a marginal utility of 24 utils from the last scone she buys, then Edith should:
A. buy more tea and fewer scones. B. not change her consumption of tea and scones. C. buy more tea and more scones. D. buy less tea and more scones.