Biology Forums - Study Force

The figure above shows a firm in a perfectly competitive market. The firm will shut down if price falls below
 
  A) P1.
  B) P2.
  C) P3.
  D) P4.

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Ques. 2

The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore
 
  A) widgets and McBoover devices are substitutes.
  B) widgets and McBoover devices are complements.
  C) widgets are a normal good.
  D) McBoover devices are a normal good.

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Ques. 3

What is the difference between a recessionary gap and an inflationary gap?
 
  What will be an ideal response?

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Ques. 4

The figure illustrates the market for posters. The tax on a poster is ________ and the government's tax revenue from the sale of posters is ________ a month.
 
  A) 0.50; 150
  B) 0.35; 105
  C) 0.35; 200
  D) 0.35; 140

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Ques. 5

The figure above shows Sam's budget line. The vertical intercept of Sam's budget line is equal to
 
  A) the quantity of coffee purchased if zero gasoline is purchased.
  B) Pc/Y.
  C) the quantity of gasoline purchased if zero coffee is purchased.
  D) Pg/Y.

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Ques. 6

In the above, which figure shows a linear relationship?
 
  A) Figure A
  B) Figure B
  C) both Figure A and Figure B
  D) neither Figure A nor Figure B

(Answer to Q. 1)  B

(Answer to Q. 2)  A

(Answer to Q. 3)  A recessionary gap exists when the economy is in a below-full-employment equilibrium when potential GDP exceeds real GDP. The recessionary gap is the amount by which potential GDP exceeds real GDP. An inflationary gap occurs when the economy is in an above-full-employment equilibrium when real GDP exceeds potential GDP. In this case, the inflationary gap is the difference between real GDP and potential GDP.

(Answer to Q. 4)  A

(Answer to Q. 5)  C

(Answer to Q. 6)  C

I wish all teachers could be as helpful as you instead of making us do things the complicated way...

It really depends on the course, never give up