If a firm has $1,000,000 in fixed costs and variable costs equal to $100 for every unit they produce,
A. their marginal costs are decreasing.
B. the marginal costs are increasing.
C. their average costs are decreasing.
D. their fixed costs are decreasing.
Answer: C
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A country reports that its inflation rate and unemployment rate have both increased. These changes could be the result of
A) a movement downward along the short-run Phillips curve. B) a movement upward along the short-run Phillips curve. C) a downward shift of the short-run Phillips curve. D) an upward shift of the short-run Phillips curve. E) a leftward shift of the long-run Phillips curve.
An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average fixed cost equal to when Q = 10?
What will be an ideal response?
If the FOMC orders the sale of T-bills in the open market, then bank reserves are
a. decreased, but the money supply will remain unchanged. b. decreased, and a multiple contraction of the money supply will occur. c. increased, but the money supply will remain unchanged. d. increased, and a multiple expansion of the money supply will occur.
If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
A. The quantity of milk demanded will increase. B. The quantity of milk supplied will decrease. C. There will be a surplus of milk. D. There will be a shortage of milk.