If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
A. $20.
B. $30.
C. $50.
D. $70.
Answer: C
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GDP counts:
A. only final goods and services, because otherwise certain things would be double-counted and the GDP would be overestimated. B. only intermediate goods and services, because those are easier to track. C. both intermediate and final goods and services because it is important to capture all values, regardless of which market they take place in. D. all values that are reported to the government.
Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
A. an increase in the supply of piercings and a lower price for piercings. B. an increase in the supply of piercings and a higher price for piercings. C. a decrease in the supply of piercings and a higher price for piercings. D. a decrease in the supply of piercings and a lower price for piercings.
What is a sequential game? How are decision trees used to analyze sequential games?
What will be an ideal response?
The delay between when a problem is recognized and when policy action is taken is referred to as the
A) recognition lag. B) action lag. C) effectiveness lag. D) policy lag.