Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
a. c and d.
b. Calculating the product of average total cost and quantity
c. Determining what the shop would pay for if they produced zero output
d. Subtracting the total variable costs from the total costs
e. Subtracting total variable costs from total revenue
a
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Most economists agree that the best rate of inflation for a stable economy would be around:
A. zero. B. two to three percent. C. five to six percent. D. seven percent.
The Fed could conduct an open market purchase to eliminate an inflationary gap.
a. true b. false
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If an increase in the supply of a product results in a decrease in the price, but no change in the actual quantity of the product exchanged, then the:
A. price elasticity of supply is infinite. B. price elasticity of demand is zero. C. price elasticity of demand is unitary. D. price elasticity of supply is zero.