If a firm’s fixed costs increase, then profits drop but its output should not change.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) not change interest rates. B) increase the inflation rate. C) increase interest rates. D) decrease interest rates.
An increase in the prison population would tend to cause, other things the same, a decrease in ________
A) federal disabilities benefits B) the use of temporary workers C) the college premium D) the natural rate of unemployment
Real GDP in a small country is worth $8 billion. The population of the country is 200,000. What is per capita Real GDP?
A) $30,000 B) $40,000 C) $60,000 D) $300,000
Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 19 hours per week that she can spend working at either the bookstore or at other potential jobs. One potential job, at a café, will pay her $12 per hour for up to 7 hours per week. She has another job offer at a garage that will pay her $10 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $8.50 per hour for as many hours as she can work. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
a. 4 hours b. 7 hours c. 12 hours d. 16 hours