The Classical model
a. is now discredited
b. was developed by John Maynard Keynes
c. has been completely displaced by the short-run macro model
d. helps us to understand the performance of the economy in the long run
e. is most useful in helping us to predict when an economic downturn will occur
D
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If price is less than its minimum average variable cost, a perfectly competitive firm that continues to produce in the short run
a. cannot cover any of its variable cost b. incurs a loss greater than its fixed cost c. can cover all of its fixed cost and some of its variable cost d. can cover all of its variable cost and some of its fixed cost e. can cover both its fixed costs and its variable cost
The GDP deflator
A. Is the price index based on a fixed basket of goods and services for the government. B. Is the broadest price index, covering all output. C. Is the best measure of inflation for consumers. D. Reflects the price changes felt by producers but not consumers.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
The average temperature is supposed to rise
A. 3-5 degrees in the next 10 years. B. 3-5 degrees F in the next 100 years. C. 15 degrees F in the next 100 years. D. 1 degree F in the next 100 years.