Oil wells and seasonal resorts will often shut down temporarily because:
A. prices for their output temporarily fall below their average variable costs of production.
B. fixed costs temporarily rise, making production unprofitable.
C. variable costs for pumping oil and operating resorts fluctuate significantly.
D. government regulations require seasonal shutdowns for maintenance purposes.
Answer: A
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Institutions that borrow money from savers to lend to borrowers are known as
A) financial markets. B) bond brokers. C) financial intermediaries. D) asset exchanges.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if this economy were to open to free trade, the domestic quantity demanded would be:
A. 1500. B. 250. C. 500. D. 1150.
"Effective demand" represents which of the following?
A) money demand B) demand for exports C) domestic demand D) the demand for labor E) aggregate demand
If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output increases from 5 million to 7 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.