Which of the following was true of the United States before 1970?
a. The government was not responsible for promoting employment, output, and purchasing power.
b. Most macroeconomic instability was caused by changes in international oil prices
c. Most macroeconomic instability was caused by shifts of aggregate demand.
d. Most macroeconomic instability was caused by the depreciation of the dollar.
e. The government was responsible for using monetary policy to correct a depression.
c
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Firm X's total fixed costs are $1,000. Its total variable costs of producing 100 units are $2,000, and its total variable costs of producing 200 units are $4,000. Which of the following will happen to firm X's average costs as it increases output from 100 to 200 units?
a. Average costs increase. b. Average costs decrease. c. Average costs remain constant. d. Average costs increase slightly.
A tariff is a tax on ________ goods that is designed to ________
a. exported; protect domestic industries b. exported; hurt foreign industries c. imported; make domestic consumers pay more d. imported; protect domestic industries e. domestic; discourage imports