Suppose X and Y are complements and demand for X is Qxd = ?0 + ?XPX + ?YPY + ?MM + ?HH. Then we know
A. ?H > 0.
B. ?M < 0.
C. ?Y < 0.
D. ?X > 0.
Answer: C
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A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is
A) less than 70 units. B) between 70 and 120 units. C) between 120 and 170 units. D) more than 170 units.
It is not surprising to see a rather __________ volume of mergers and acquisitions in the United States given its __________-oriented financial system
A) high; banking B) high; markets C) low; banking D) low; markets
Answer the following statement(s) true (T) or false (F)
1.The multiplier effect causes the ultimate increase in total purchases to be greater than the initial increase. 2.The marginal propensity to consume is the fraction of additional disposable income that a household consumes rather than saves. 3.The 2008–2009 recession was the mildest recession since the Great Depression. 4.Since the 1930s, economic stabilization policies have focused primarily on the supply side of the economy. 5.Economist Arthur Laffer invented a graphic demonstrating the effect of tax rates on government revenue.
Suppose your accountant told you that the $50,000 you made last year was your normal profit. When you asked him what your accounting profit was he replied that it was precisely the same as your normal profit. You wouldn't have to ask what your economic profit was because you know it must be
a. 0 b. $50,000 c. $100,000 d. $50,000 loss e. $100,000 loss