Suppose you're producing designer clothes for Barbie dolls. You're producing 100 units and discover that the MR for the 100th unit is $50 while the MC of the 100th unit is $45 . If you're in the short run, it's a signal for you to
a. shut down
b. stay where you are because you're making profit on that unit
c. increase production beyond 100 units
d. produce less than 100 units
e. it's no signal because price data is unknown
C
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The quantity of money people want to hold increases if
A) the price level falls. B) the nominal interest rate rises. C) real GDP increases. D) All of the above answers are correct.
When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
Which of the following decreases aggregate supply?
A) discoveries of new raw materials B) an increase in competition C) an increase in training and education D) a decrease in labor supply
The graph shown best represents which of the following?
A. A tax on sellers
B. A subsidy to sellers
C. A price floor.
D. A subsidy to buyers