Business cycles are short-term fluctuations in the economy relative to the long- term trend in ______.
a. interest rates
b. inflation
c. output
d. employment
c. output
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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's total cost function?
A. TC = 50,030 + 30.005Q + 0.0025Q2 B. TC = 50,000 + 50Q - 0.0025Q2 C. TC = 20,000 - 400P D. TC = 50,000 + 30Q + 0.0025Q2
Suppose your parents are thinking of buying you a brand new car as a graduation present. Economists would argue that it would be better if:
A. They gave you a cash gift equal to the value of the car regardless of how much you need a car right now B. They ask you for what kind of car you want first and then buy it for you C. They gave you a cash gift equal to the value of the car long as you really don't have much use for a car right now D. You sell the car to someone else right away in exchange for the cash
In recent years, people have benefited from greater amounts of leisure time. This trend:
A. has caused GDP to rise. B. has caused GDP to fall. C. made GDP fluctuate randomly. D. is not accounted for in GDP.
Describe rising health care costs in the United States relative to GDP
What will be an ideal response?