Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. If the price of oil increases, the demand for ride-on mowers will ________ and the supply will ________.
A. decrease; increase
B. increase; decrease
C. decrease; decrease
D. increase; increase
Answer: C
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If you were asked to draw a graph that showed the total fixed costs (vertical axis) for various levels of output (horizontal axis), you would draw a line/curve that
a. increased with a slope equal to the average fixed cost b. decreased with a slope equal to the average fixed cost c. increases for a while and then decreases d. decreases for a while and then increases e. had a slope of zero
One of the potential social benefits of the Bitcoin is:
a. It can be used instead of a domestic currency in times of financial stress and exchange rate controls. b. It can free individuals from harmful monopoly currencies. c. It can be programmed to increase at a rate that guards against over-issuance. d. All of the above are true.
If total cost is €500 when output is zero and €1,000 when output is 10 and €1400 when output is 20, then fixed cost is equal to:
(a) €1000. (b) €1400. (c) €900. (d) €500.
Of the following countries, which country's government collects the least amount of tax revenue as a percentage of that country's total income?
a. Japan b. United States c. Mexico d. Denmark