Which of the following is the correct way to calculate total cost?
A. TVC +TFC
B. TR - TFC
C. TR - TVC
D. ATC ÷ q
Answer: A
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The United States has had a long history of work time lost due to worker strikes. This trend has
A. increased over time. B. decreased over time. C. stayed relatively constant during the past century. D. been less of a problem compared to other countries such as Japan.
The law of ______ states that the higher (lower) the price of the good, the greater (smaller) the quantity provided, ceteris paribus.
a. equilibrium b. demand c. supply d. surplus
Use the following figure to answer the next question.
Suppose the economy is currently at full employment with aggregate demand curve AD2. A further increase in consumption and investment spending will cause ________.
A. demand-pull inflation, and the new equilibrium output will be more than Q2 B. cost-push inflation, and the new equilibrium output will be less than Q2 C. demand-pull inflation, and the new equilibrium output will be less than Q2 D. cost-push inflation, and the new equilibrium output will be more than Q2
Which has a larger effect on aggregate demand: an increase in government expenditure or an equal sized decrease in taxes? Explain your answer
What will be an ideal response?