In analyzing the operation of a firm, an economist assumes the firm wants to
A) maximize total sales.
B) maximize total revenue.
C) maximize total production.
D) maximize total profits.
Answer: D
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If you know that total fixed cost is $200, total variable cost is $600, and total product is 4 units, then average total cost must be
A. $200. B. $250. C. $3,200. D. $800.
If Congress votes to increase government purchases and at the same time decrease personal income taxes, they
a. have decided to balance the federal budget. b. have voted for the proper policy to counteract a recessionary gap. c. have voted for the proper policy to counteract an inflationary gap. d. are trying to achieve a federal budget surplus.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy were to open to free trade, it would become:
A. a net-importer. B. an autarky. C. a net-exporter. D. less efficient with less overall market surplus.
Which of the following scenarios would be most likely to cause the shift in the supply for loanable funds from S0 to S1, shown in the following diagram?
a) Households decide to save more. b) Households decide to save less. c) Businesses decide to invest more. d) Businesses decide to invest less.