Suppose when the price of pizza goes from $8 to $12 per pie, production increases from 2,500 pies to 4,000 pies per month. Using the mid-point method, the percentage change in price is:
A. 40 percent
B. 46 percent
C. 1.31
D. 0.35
A. 40 percent
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If you put a $20 bill in the pocket of your winter coat at the beginning of spring so that you will be surprised when you find it again next winter, you are using money as:
A. bank reserves. B. a medium of exchange. C. a store of value. D. a unit of account.
Economic growth can be shown by
A) a rightward shift in the aggregate supply curve. B) a leftward shift in the aggregate supply curve. C) a leftward shift in the production possibilities curve. D) no change in the aggregate supply curve.
For most firms in the economy, the largest part of factor costs is the cost of
a. labor. b. capital. c. property and machinery. d. land and natural resources.
Refer to the accompanying figure. Suppose a law is passed requiring restaurants to charge no more than $25 per meal. This law would:
A. increase producer surplus. B. have no effect on producer surplus. C. decrease producer surplus. D. have an ambiguous effect on producer surplus.