Which of the following best describes total fixed cost?
A. Costs that do not vary as output varies.
B. Total cost divided by the quantity of output produced.
C. Total variable cost divided by the quantity of output produced.
D. Total fixed cost divided by the quantity of output produced.
Answer: A
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Which of the following best describes a good with perfectly elastic supply?
A) Any increase in the price of the good leads to an increase in the seller's revenue. B) Any increase in the price of the good decreases the quantity supplied of the good by more than the price change. C) Any increase in the price of the good will induce the firm to supply an infinite quantity of the good. D) Any increase in the price of the good increases the quantity supplied of the good exactly by the amount of the price change.
The making and selling of a pencil for ten cents would likely NOT be possible, but for
A) relative advantage. B) the production possibilities curve. C) absolute advantage. D) the division of labor.
The opportunity cost of labor is the time forgone for leisure
a. True b. False Indicate whether the statement is true or false
The classical model differs from the Keynesian model in that
a. monetary policy does not impact output in the Keynesian model. b. the classical model focuses on the long-run and the Keynesian model focuses on the short-run. c. fiscal policy is more powerful in the classical model than in the Keynesian model. d. the classical model believes monetary policy is a powerful impact on output and fiscal policy is not. e. None of the above