In the short run, a firm should shut down its business if price is less than:
a. ATC.
b. AR.
c. MC.
d. AVC.
e. AFC.
d
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What was the goal of Operation Twist?
A) to reduce long-term interest rates and increase short-term interest rates B) to reduce short-term interest rates and increase long-term interest rates C) to reduce both short-term and long-term interest rates D) to increase both short-term and long-term interest rates
Stagflation can be defined as a combination of ____
a. economic migration and inflation b. economic aggregation and deflation c. economic stagnation and inflation d. economic aggregation and inflation
Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?
a. The response of buyers to a change in the price of bananas is strong, and the response of sellers to a change in the price of bananas is weak. b. The response of sellers to a change in the price of bananas is strong, and the response of buyers to a change in the price of bananas is weak. c. The response of buyers and sellers to a change in the price of bananas is strong. d. The response of buyers and sellers to a change in the price of bananas is weak.
The following table lists the basket of goods in the Consumer Price Index for the nation of Astro (assume 2014 is the base year).?2014 Quantity2014 Price2015 Quantity2015 Price2016 Quantity2016 PriceSunglasses8$9.0010$11.007$10.00Toothpaste15 3.0018 4.0015 4.00Ferrets6 12.004 15.009 18.00
Using the information in Table 12.2, the inflation rate from 2015 to 2016 is about:
A. 4 percent. B. 5 percent. C. 17 percent. D. 31 percent.