Refer to the graph below. At equilibrium, the minimum acceptable revenue that sellers would have been willing to receive is represented by the area:
The equilibrium point in the market is where S and D curve intersect.
A. b
B. b + c
C. a + b
D. c
D. c
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As frozen yogurt became popular, many different frozen yogurt shops popped up all over the country. This suggests that the
A. the quantity supplied of frozen yogurt decreased. B. supply of frozen yogurt decreased. C. supply of frozen yogurt increased. D. the quantity supplied of frozen yogurt increased.
The price of reserves that are borrowed from the Federal Reserve is called the
A) discount rate. B) federal funds rate. C) LIBOR. D) prime rate.
Tax distortions refer to the cost of inflation that comes from:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. the time, money, and effort one has to spend managing cash in the face of inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all. D. labor costs associated with inflation.
A firm's demand curve for labor slopes downwards because
A) firms supply less labor as the wage rate rises. B) of rising marginal product. C) workers supply less labor services as the wage rate falls. D) of the law of diminishing marginal returns.