Refer to the graph. Which one of the following would cause a move from point b on short-run average total cost curve ATC 1 to point e on short-run average cost curve ATC 2?
A. Diminishing marginal returns.
B. An increase in the wage rate.
C. A decrease in the wage rate.
D. Increasing marginal returns.
B. An increase in the wage rate.
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Lisa has an income of $250 per week, which she spends entirely on milk and eggs. The price of milk is $2 per gallon and the price of a dozen eggs is $1
What is the opportunity cost of a gallon of milk? If the price of a dozen eggs rises to $1.50, what happens to the opportunity cost of a gallon of milk?
Which of the following would cause a movement along the supply curve for cupcakes?
a. an improvement in technology for commercial mixers b. a decrease in the price of cupcakes c. an increase in the price of cake flour d. All of the above are correct.
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude
that A) The own-price elasticity for gasoline is nearly -0.70 B) The own-price elasticity for gasoline is -1. C) The own-price elasticity for gasoline is roughly -1.43. D) Can't tell; insufficient information.
If a U.S. company imports 10 Toyotas from Japan at $15,000 each, and the Japanese company buys airline tickets on a U.S. airline with the money, how does this affect the U.S. balance of payments accounts?
A. No change in trade balance or financial account balance B. Decline in financial account balance; increase in trade balance C. Decline in trade balance; increase in financial account balance D. Decline in trade balance; decrease in financial account balance