Refer to Figure 8.1, which shows a family of average cost curves. The average variable cost curve is represented by:
A. Curve 1.
B. Curve 2.
C. Curve 3.
D. the vertical sum of curve 2 and curve 3.
Answer: B
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A clear-cut "rules versus discretion" debate is no longer possible because those economists advocating rules for ________, such as ________, must leave the Fed with plenty of discretionary power
A) policy instruments, the money supply B) policy instruments, the inflation rate C) target variables, the money supply D) target variables, the inflation rate
In every economic system, choices must be made because resources
A) are unlimited, but human desires and wants are limited. B) are limited, but human desires and wants are unlimited. C) are unlimited, and so are human desires and wants. D) are limited, and so are human desires and wants.
Assume that aggregate supply meets aggregate demand in the upward sloping portion of the AS curve. For each of the following, graph the change in aggregate supply and/or aggregate demand, and state the effect on prices and output. 1. The demand for U.S. exports increases. 2. Taxes increase. 3. Businesses become less optimistic about the future. 4. The labor force increases. 5. Costs of production
increase. What will be an ideal response?
In the foreign exchange market between the Japanese yen and the U.S. dollar, an excess demand for Japanese yen will result in a depreciation of the Japanese yen relative to the U.S. dollar.
Answer the following statement true (T) or false (F)