If the price per barrel of Crude decreases in the international market, then this event would most likely:
a. Increase aggregate demand in the United States
b. Increase aggregate supply in the United States
c. Decrease aggregate supply in the United States
d. Decrease aggregate demand
Answer: b. Increase aggregate supply in the United States
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Cartels usually succumb to divisive forces caused by: a. stringent enforcement of a cartel agreement
b. the similarity of production costs across member firms. c. members cheating by giving secret discounts. d. insufficient profits compared to independent operations.
An example of nondiscretionary fiscal policy would be
A. an interest rate cut implemented to stimulate consumption. B. a federal jobs program adopted to stimulate consumption. C. a tax cut adopted to stimulate consumption. D. the existence of the progressive federal income tax.
Since 1970, as a percent of GDP, M1 held has steadily decreased. Which of the following can account for this fact?
A) Real GDP has increased since 1970. B) The price level has risen since 1970. C) The nominal interest rate has steadily risen since 1970. D) The nominal interest rate has steadily fallen since 1970. E) Credit cards have become more widely available since 1970.
Refer to Table 15-1. When producing the profit-maximizing output, what is the amount of the firm's profit?
A) $335 B) $350 C) $880 D) $910