If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25, what is its total variable cost?
a. $200
b. $320
c. $1,000
d. $650
a
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The typical relationship between a worker's productivity and the worker's wage rate is
A) high productivity workers receive low wage rates. B) low productivity workers receive low wage rates. C) no link between productivity and wages earned. D) high productivity workers find that their jobs are often outsourced. E) that workers with high productivity need to have their high wages protected by tariffs.
The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, what is the tax per blouse?
A) $10 per blouse B) $20 per blouse C) $30 per blouse D) $40 per blouse
An owner of a local salon realized that by decreasing the prices that she charges for haircuts, her revenue has increased. This implies that
a. The demand for her haircuts is elastic b. The demand for her haircuts is inelastic c. The demand for her haircuts is unitary elastic d. The demand for her haircuts is perfectly inelastic
An inflationary gap may be eliminated using contractionary fiscal policy.
a. true b. false