Engineers for the Off Road Skateboard Company determine that a 12% increase in all inputs will cause a smaller percentage increase in output. Assuming that input prices remain constant, you correctly deduce that such a change in inputs will cause ________ as output increases.
A. average fixed costs to increase
B. average costs to decrease
C. average costs to increase
D. total costs to decrease
Answer: C
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The tradeoff between current consumption and the production of capital goods also reflects a tradeoff between
A) the future production of capital goods and future consumption of goods. B) economic growth and technological change. C) satisfying today the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.
According to your authors, the "boom-bust" cycle is primarily caused by
A) government tax and spend policies. B) an artificial lowering of interest rates through expansionary monetary policy. C) waves of irrational optimism and pessimism in the business community. D) a clash of interests among capitalists and laborers.
The total cost curve:
A. is always above the variable cost curve. B. is parallel to the variable cost curve. C. is the sum of the variable cost curve and fixed cost curve. D. All of these are true.
The way that economists explain it, the worker is a ________ in the________ market.
A. buyer; job B. seller; labor C. buyer; labor D. seller; job