A French tourist spent $1,200 in the U.S this year. This transaction will lead to a(n)
A) increase in the GDP of France
B) decrease in the GDP of France
C) increase in the GDP of U.S.
D) decrease in the GDP of U.S.
Answer: C) increase in the GDP of U.S.
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Explain why the average cost curve for the long run differs from that for the short run.
What will be an ideal response?
If food is on the vertical axis and shelter on the horizontal axis, the slope of the budget line is given by
A. -Ps/Pf. B. -Pf/Ps. C. Pf/Ps. D. Ps/Pf.
Refer to Figure 8.11. If Fred's profit in the top rectangle were 1,300 instead of 500, then the path of the game would be:
A. Fred chooses a small quantity and Barney enters. B. Fred chooses a large quantity and Barney enters. C. Fred chooses a small quantity and Barney stays out. D. Fred chooses a large quantity and Barney stays out.
Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the law of supply has been violated. B) the demand for swimming pool maintenance services has increased. C) the supply of swimming pool maintenance services has decreased. D) swimming pool maintenance services are becoming more technologically advanced.