Al’s Donuts produces about 600 dozen doughnuts daily. If flour prices increase 20 percent,
A. only marginal cost will shift up.
B. only marginal cost and average total cost will shift up.
C. marginal cost, average variable cost, and average total cost will shift up.
D. marginal cost, average total cost, average variable cost, and average fixed cost will shift up.
Answer: C
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According to the classical economists,
A. the interest rate will ensure that the amount households plan to save will equal the amount businesses desire to invest. B. the amount households plan to save is determined primarily by their wage. C. increasing government spending is the most reliable method of restoring full employment. D. unemployment is caused by too little spending.
When calculating GDP, underground economic activity is
A) the production of goods and services in the home. B) that portion of the time when we are enjoying leisure activities and not producing marketable goods. C) the part of the economy purposely hidden. D) an aspect of the quality of life, such as health and life expectancy.
Which of the following are NOT part of the World Bank?
A) International Development Association B) Federal Reserve Bank of New York C) International Center for Settlement of Investment Disputes D) Multinational Investment Guarantee Agency
Which of the following is generally true of a monopolistic competitor operating in the long run?
a. price equal to minimum average total cost b. marginal cost exceeds marginal revenue c. marginal revenue exceeds marginal cost d. price exceeds marginal cost