In an increasing-cost industry, an increase in output will lead to
A) an downward shift in the ATC curve.
B) an downward shift in the MC curve.
C) a reduction in long-run per-unit costs.
D) an increase in long-run per-unit costs.
Answer: D
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Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies. If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A) 5 pies B) 10 pies C) 15 pies D) 20 pies
All economists agree that World War II (1941–45) was responsible for ending the Great Depression
Indicate whether the statement is true or false
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
a. make it easier for the Fed to properly time changes in monetary policy. b. make it more difficult for the Fed to properly time changes in monetary policy. c. not affect the Fed's ability to time monetary policy changes correctly. d. make it easier for the Fed to control inflation and achieve price stability.
Refer to the accompanying figure. For demand curve D1, what is the price elasticity of demand when P = 12?
A. 4 B. 12 C. 3 D. 6