Which of the following suggests that lower average prices stimulate more borrowing?
Suppose a recent college graduate has an annual nominal income of $42,000 for the first year she works. If the annual inflation rate is 5 percent, what salary would she need in the second year to maintain the same real income?
When producing jeans, which of the following is not a variable cost in the short run?
Equilibrium price refers to the:
A flat or horizontal demand curve for a firm indicates that:
aPrice at which the quantity demanded of a good equals the quantity supplied.
cRent for the factory
dThe firm has no market power.
eThe interest rate effect
5 Multiple Choice Questions
Decreases in production were temporary.
The money supply becomes smaller.
5 True/False Questions
The number and relative size of firms in an industry is the definition of: → Market structure.
If Pepsi and Coke are the only two soft drink producers, they could be considered: → Does not change total revenue.
A public good is: → Account for two-thirds of total U.S. output.
Proprietorships: → Account for two-thirds of total U.S. output.
If demand is elastic, then: → Difference between social and private costs or benefits.