When the representatives of the OPEC countries met in March 1999 and decided to reduce the amount of oil each country would produce, the result was
A. the world demand for oil fell.
B. the world supply of oil fell.
C. the price of oil fell.
D. All of the choices were results of this meeting.
B. the world supply of oil fell.
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Refer to Table 4-7. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $10.50; Q* = 1,180,000 B) W* = $10.50; Q* = 590,000 C) W* = $9.50; Q* = 570,000 D) W* = $11.50; Q* = 570,000
The firm's fixed cost refers to costs that
a. do not change as the price of a good changes b. do not change as the firm's output changes c. can never be changed d. can only be changed in the short run e. do not change when the scale of the operation changes
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Other things equal, if the prices of a firm's variable inputs were to fall:
A. marginal cost, average variable cost, and average total cost would all fall. B. one could not predict how unit costs of production would be affected. C. marginal cost, average variable cost, and average fixed cost would all fall. D. average variable cost would fall, but marginal cost would be unchanged.