If a firm increases production, then its:
A. fixed costs stay the same.
B. total costs increase.
C. variable costs rise.
D. All of these are true.
Answer: D
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If the government imposes an effective ________, a deadweight loss ________
A) price floor; does not occur B) price ceiling; does not occur C) price ceiling; occurs D) price support; does not occur E) Both answers C and D are correct.
If the real wage is equal to 7 widgets, and only an integer number of workers can be hired, the Widget company should hire
A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers.
Which of the following is true of an intermediate good? a. It is of no value to the seller
b. It is of no value to the buyer. c. It is purchased for household production. d. It helps produce another good. e. It is sold at a discounted price by firms.
Identify each of the following acts as representing either saving or investment
a. Fred uses some of his income to buy government bonds. b. Julie takes some of her income and buys mutual funds. c. Alex purchases a new truck for his delivery business using borrowed funds. d. Elaine uses some of her income to buy stock in a major corporation. e. Henrietta hires a builder to construct a new building for her bicycle shop.