A temporary supply shock, such as a bumper crop, would
A) shift the FE line to the right and leave the IS curve unchanged.
B) shift the FE line to the left and shift the IS curve up and to the right.
C) shift the FE line to the left and leave the IS curve unchanged.
D) have no effect on the FE line.
A
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If the marginal cost curve is below the average variable cost curve
A. both average total cost and average variable cost are decreasing. B. average variable cost is less than average fixed cost. C. both average total cost and average variable cost are increasing. D. average total cost is increasing but average variable cost is decreasing.
If the university administration plans to hike tuition charges in the hope of increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True b. False Indicate whether the statement is true or false
Suppose a country's debt rises by 6% and its GDP rises by 8%. What happens to the debt-GDP ratio?
A) It rises if there is a budget deficit that period. B) It falls. C) It rises. D) There is insufficient information to answer the question.