Economists use the term shocks to mean
A. sudden rises in oil prices.
B. unexpected government actions that affect the economy.
C. typically unpredictable forces that have major impacts on the economy.
D. the business cycle.
Answer: C
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Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone increases:
A. the average total cost curve shifts downward at all output levels. B. the marginal cost curve shifts upward at all output levels. C. the vertical distance between the average total cost curve and average variable cost curve increases at all output levels. D. the average variable cost curve shifts upward at all output levels.
Restrictions on imports
A. protect United States jobs. B. usually have no permanent effects on an economy. C. is the best way to increase exports. D. eventually reduce exports.
Use the following graphs to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Assuming Q1 is full-employment output, an expansion is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (A) and (B)
Consensus becomes easier to achieve as the number of firms in a cartel grows
a. True b. False