Refer to Figure 8.4. After Point A
A) average total costs are increasing.
B) marginal costs are decreasing.
C) average variable costs are decreasing.
D) average variable costs are increasing.
D) average variable costs are increasing.
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According to the law of demand, a demand curve
A. Has a negative slope. B. Has a positive slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.
If the parity ratio goes from 0.8 to 0.7, it means that the prices received by farmers had:
A. Fallen by 12.5% relative to the prices they paid B. Fallen by 10% relative to the prices they paid C. Risen by 12.5% relative to the prices they paid D. Risen by 10% relative to the prices they paid
Automatic stabilizers lead to: a. a decrease in taxes collected by the government during an economic expansion. b. a decrease in unemployment compensation during a recession
c. Congressional action on changing the tax codes. d. none of the above
When price is $8
A. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium price.
B. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium price.
C. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium price.
D. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium price.