Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A. fixed costs are zero.
B. average fixed costs are increasing.
C. average total cost will decrease if production is increased.
D. average total cost is minimized at the current level of output.
Answer: D
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The figure above shows the market for low-skilled labor in Midland city. The government sets a minimum wage at $6 per hour
With the minimum wage law enacted, at the quantity of labor employed, the value to the firm of last worker hired is ________ the wage rate for which that person is willing to work. A) the same as B) $3 per hour less than C) $3 per hour greater than D) $1 per hour greater
The first banking crisis of the 1930s was probably caused by
a. low farm prices. b. the stock market crash. c. antagonism between Wall Street banks and Main Street banks. d. Bank of England attempts to preserve the gold standard by raising interest rates.
A tax levied on the purchase of a specific good or service is
A. a purchase tax. B. a value tax. C. an excise tax. D. a consumption tax.
The most common measure of productivity shocks is known as
A. the Prescott productivity parameter. B. the Solow residual. C. the Kydland factor. D. the Lucas supply curve.