If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25, what is its total fixed cost?

Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and consumed in the United States. If the government imposes a tax of $2 per bottle of wine, the government will collect

A) more than $10 million in tax revenues. B) $10 million in tax revenues. C) less than $10 million in tax revenues. D) an amount that may be more than, equal to, or less than $10 million in tax revenues depending on the precise elasticity of demand.

During the recession of 2007-2009 in the United States, ________ relative to potential GDP

A) business fixed investment spending rose and net export spending declined B) federal government purchases rose and changes in business inventories declined C) consumption spending rose and residential construction spending declined D) net export spending rose and consumption spending declined