Slope is the best measure of responsiveness of the quantity demanded to a price change.
Answer the following statement true (T) or false (F)
False
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The natural rate of unemployment is
A) the unemployment rate when cyclical unemployment is the only type of unemployment. B) the unemployment rate when there is no frictional unemployment. C) the rate of unemployment associated with long-run equilibrium. D) zero.
A consumer has spent all of his funds on hamburgers and movies. The price of a hamburger is $1 and the price of a movie is $5. The marginal utility of the last hamburger is 5 and the marginal utility of the last movie is 40. This consumer has
A. not maximized utility. To maximize utility, he should cut back on movies and buy more hamburgers. B. not maximized utility. To maximize utility, he should cut back on hamburgers and buy more movies. C. maximized utility. D. not maximized utility. To maximize utility, he should cut back consumption of each.
Which of the following statements is correct?
A. Marginal cost is the change in the average fixed cost associated with a change in output of one unit. B. The marginal cost curve intersects the average variable cost curve at its lowest point. C. If average variable cost is increasing, then average total cost must be increasing too. D. The marginal cost curve intersects the average variable cost curve at a level of output greater than where the marginal cost curve intersects the average total cost curve.
In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.