If you were asked to draw a graph that showed the total fixed costs (vertical axis) for various levels of output (horizontal axis), you would draw a line/curve that
a. increased with a slope equal to the average fixed cost
b. decreased with a slope equal to the average fixed cost
c. increases for a while and then decreases
d. decreases for a while and then increases
e. had a slope of zero
E
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Which of the following statements is true?
A) Normative statements depend on personal preferences. B) Normative economic statements can be confirmed or disproven. C) Positive economics recommends what people ought to do. D) Positive economics deals with issues that are subjective.
In the above figure, if the interest rate is 2 percent per year, the quantity of money demanded is
A) greater than the quantity of money supplied, and the interest rate will change. B) greater than the quantity of money supplied, and the demand for money curve will shift. C) greater than the quantity of money supplied, and the supply of money curve will shift. D) less than the quantity of money supplied, and the interest rate will change. E) less than the quantity of money supplied, and the demand for money curve will shift.