In Figure 1.6, at which of the following points would the opportunity cost of producing one more SUV be highest?
A. A.
B. B.
C. C.
D. F.
Answer: D
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Since the 1960s, the share of the labor force that is unionized in the United States has
A) increased except for the government sector. B) increased. C) declined. D) declined except in the private sector.
Which of the following is an implication of the classical model?
a. The supply of loanable funds curve is downward sloping. b. The inflation rate is constantly rising. c. Fiscal policy only changes the amount of consumption, investment and government spending, not the amount of output produced. d. Monetary policy can change both the interest rate and real output. e. The interest rate can only be changed by monetary policy, not by changes in government spending.
Classical economists believe that in the short run, in the real world:
A. prices are flexible but wages were not flexible. B. prices and wages are flexible. C. wages are flexible but prices were not flexible. D. prices and wages aren't flexible enough to bring about equilibrium.
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80Above 10 units of output, the average fixed cost in Table 21.2
A. Rises above $2.00. B. Remains constant. C. Continues to decline. D. Stays below $0.50.