Other things equal, an increase in government spending shifts
A. the AD curve to the left.
B. the AS curve to the right.
C. the AS curve to the left.
D. the AD curve to the right.
Answer: D
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Use the following graphs to answer the next question.
"The bigger the volume, the lower the cost, and we pass the savings on to you" is a familiar slogan. Its idea is illustrated in which of the above graphs?
A. Graph 1 B. Graph 2 C. Graph 3 D. Graph 4
Limit pricing occurs when a firm sets price _________________.
Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?
A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.
Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6
Refer to Table 33.6. If the exchange rate is $1 = 2 euros, then
A. France will import both peas and carrots. B. the United States will import both peas and carrots. C. France will import peas. D. the United States will import peas and France will import carrots.