The average fixed costs of a firm equal
a. implicit costs divided by output.
b. explicit costs divided by output.
c. total cost minus variable cost.
d. (total cost minus variable cost) divided by output.
D
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Milton Friedman argued that the Fed's control over the money supply could be used to peg
a. the level or growth rate of a nominal variable, but not the level or growth rate of a real variable. b. the level of a nominal or real variable, but not the growth rate of a real or nominal variable. c. the level or growth rate of a real variable, but not the level or growth rate of a nominal variable. d. both levels and growth rates of both real and nominal variables.
A profit-maximizing firm with market power will always produce a level of output where
A. demand is inelastic. B. price is greater than average total cost. C. marginal revenue is greater than average total cost. D. demand is elastic.
Italy has a comparative advantage in the production of which product?
Which of the following statements would appeal to someone who favors an expanded public sector as the basis of expansionary fiscal policy?
A. “The government isn’t the solution; it’s the problem.” B. “The government that governs least governs best.” C. “The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed.” D. “If you ever got anything good out of the government you can be sure that some rich so-and-so got more.”