Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential
Answer: B
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Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be
A) an increase in the price of sugar. B) a decrease in the price of sugar. C) a leftward shift of the demand curve for coffee. D) a leftward shift of the supply curve for sugar.
Professional securities analysts achieve high rate of investment success following a random walk strategy.
Answer the following statement true (T) or false (F)
The main difficulty in applying marginal analysis is
a. calculating total cost b. determining which costs and revenues are relevant to a particular decision c. calculating average cost d. All of the above
Two friends, Diane and Stan, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Stan tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage b. Stan's time c. Diane's tips d. Stan's tips e. both Diane's and Stan's tips