Suppose that a firm is currently producing 500 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?
A) $1,500
B) $1,000
C) $500
D) $501
Answer: B
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Eli can decide between two jobs. One job is harvesting grapes at a local vineyard. He would earn $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same. If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:
A. more than $8. B. less than $8. C. exactly $8. D. exactly $7.
The purchasing power parity (PPP) method
a. calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency. b. calculates how much the general price level has increased within one specific country through time. c. calculates how much the average standard of living across all countries has changed through time. d. is used when one wants to compare dollar values from today with those from more than 100 years ago.
Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers.
B) the portion of sales tax revenue borne by producers.
C) the excess burden of the sales tax.
D) sales tax revenue collected by the government.
Economists distinguish between the short run and the long run by noting that:
A. no inputs can be varied in the long run. B. input prices are subject to fluctuations in the short run. C. output prices are subject to fluctuations in the long run. D. some inputs cannot be varied in the short run.