The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $10 for 10,000 widgets. At that level of output, the firm's average total costs equal
a. $10
b. $15
c. $20
d. $25
c
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If the market for wheat is in equilibrium, the quantity of wheat demanded will equal the quantity of wheat supplied
a. True b. False Indicate whether the statement is true or false
Why is the value of leisure listed as a shortcoming in the measurement of GDP?
A. When households take time off for leisure, the activity is not counted in GDP. However, taking time off for leisure makes households better off. B. Because GDP increases when households take more leisure. C. Because leisure increases happiness only when we take a vacation with it. D. Because households really want to work every day, and leisure gets in the way of work.
Describe the recession phase of a business cycle, including when it begins and when it ends
What will be an ideal response?
If there is a shortage of gasoline, then
A) the purchase plans of buyers are not being fully achieved. B) buyers will tend to compete amongst themselves for more gasoline. C) the price of gasoline will tend to rise. D) all the above are true. E) none of the above is true.