These are the cost and revenue curves associated with a firm.
If the firm in the given graph were to maximize profits, it would:
A. earn zero economic profits.
B. cause deadweight loss.
C. produce Q1 and charge P3.
D. All of these statements are true.
Answer: D
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Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Both the World Bank and the IMF typically
A. make loans for less than 5 years only. B. charge higher than average loan rates. C. toughen the loan requirements after a nation has violated an original arrangement. D. charge lower than average loan rates to ensure repayment.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Related to the Economics in Practice on page 67: Consumption of quinoa has been on the rise. A grain called teff has been referred to as quinoa's twin and is often consumed in place of quinoa. This would make teff and quinoa ________, and an increase in the price of quinoa should ________ the demand for teff, ceteris paribus.
A. complements; decrease B. substitutes; increase C. complements; increase D. substitutes; decrease