Chuck owns a factory that produces leather footballs. His total fixed cost equalled $86,000 last year. His total cost equalled $286,000 last year. Hence Chuck's:

Select one:

A.total variable cost equalled $372,000.

B.total variable cost was zero.

C.factory incurred an economic loss.

D.total variable cost equalled $200,000.

E.None of the above answers is correct.

An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________.

Select one:

A.falls; increases

B.falls; does not change

C.falls; decreases

D.rises; decreases

E.rises; increases

Marginal cost equals:

Select one:

A.total variable cost divided by total output.

B.total fixed cost divided by total output.

C.total cost minus total variable cost.

D.the change in fixed cost that results from a one-unit increase in output.

E.the change in total cost that results from a one-unit increase in output.

A country's CPI was 84.5 last year and 100.0 this year. The inflation rate was:

Select one:

A.18.3 per cent.

B.15.5 per cent.

C.7.29 per cent.

D.-18 per cent.

E.84.5 per cent.

The free-rider problem:

i.means that people can consume a good without paying for it.

ii.means that people pay too much for a good in order to consume it.

iii.applies to a public good.

Select one:

A.i and iii

B.iii only

C.i and ii

D.i only

E.ii and iii