In economics, a fixed cost is a cost that
A. is present only in the short run.
B. does not vary with the level of output.
C. goes up as the level of output goes up.
D. goes down as the level of output goes up.
Answer: B
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Which of the following is false?
A. The completion of the national railroad network by 1890 led to the development of a national American market rather than just a series of smaller regional markets. B. Before the Civil War the North and the South were in agreement on the issue of protective tariffs, but were in conflict over the spread of slavery into the new Western territories. C. The U.S. was the first mass-consumption society. D. From 1900 to the end of World War I, U.S. farmers prospered.
Money that can be used to purchase capital goods is known as
a. financial capital. b. profit. c. liquid capital. d. interest.
If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) the money supply and a decrease in interest rates. B) taxes. C) oil prices. D) government purchases.
The natural rate of unemployment has increased in the United States and Europe over the last twenty years. What are things that could account for this?
What will be an ideal response?