In the short run, the fixed costs of a firm:
A. must be paid regardless of level of output.
B. must be higher than variable costs for the firm.
C. should be strongly considered in deciding whether to shut down production.
D. are zero when quantity produced is zero.
Answer: A
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Use the figure below to answer the following question.
In the past few years, the quantity of donuts demanded has increased due to changes in the prices of donuts. This would be illustrated by a change from
A. point 5 to point 2. B. point 1 to point 2. C. point 3 to point 6. D. point 4 to point 6.
Overcrowding under public school choice is not a problem because _____
a. parents find crowded schools undesirable b. parents do not mind sending their kids to schools far away from home c. schools have the ability to drastically expand capacity in the short-run d. schools will be extremely exclusionary
The Federal Open Market Committee (FOMC) consists of: a. the Board of Governors and the Secretary of the Treasury
b. the presidents of the 12 Federal Reserve Banks. c. the Board of Governors and some of the Federal Reserve Bank presidents. d. the Comptroller of the Currency and seven Reserve Bank presidents. e. representatives from banks throughout the U.S.
In the 1980s, the U.S. current account deficit was financed by:
a. large outflows of domestic capital to other countries. b. large inflows of capital from private foreign investment in the United States. c. loans made by U.S. residents to the government. d. large inflows of foreign government capital. e. the Tax Reform Act of 1986, which increased income taxes for the wealthy.