Which of the following statements about a firm's short-run variable costs is correct?
A. They are always a greater expense than are fixed costs.
B. They include the costs of plant and equipment.
C. They increase as the level of output decreases.
D. They typically include the cost of workers' wages.
Answer: D
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Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. What event would prevent a shortage of euros from developing?
a. The dollar price of one euro remains fixed at $1.00.
b. The quantity of euros demanded changes from Q1 to Q2.
c. The dollar price of one euro is allowed to change to $1.50.
d. An increase in demand for euros shifts D1 to D2.
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP (1996 $ billions)(A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0 The economy experienced an expansion that lasted from:
A. July 1953 to April 1957. B. May 1954 to April 1957. C. May 1954 to April 1958. D. July 1953 to May 1954.