The gure shows the demand for money curve in Epsilon. The Fed wants the interest rate to be 6 percent a year. If the interest rate is 5 percent a year, do people buy or sell bonds? Does the price of a bond rise or fall? Does the interest rate rise or fall? Draw the supply of money curve if the Fed wants the interest rate to be 6 percent a year. Label it. Draw a point at the equilibrium in the money market. If the interest rate is 5 percent, people will El bonds. Bond prices and the interest rate will (:1 A. fall; fall C) B. fall; rise (:3 C. rise; rise C) D. rise; fall Interest rate (percent per year) 2.8 2.9 3.0 3.1 3.2 Real money (trillions of 2005 dollars) >>> Draw only the objects specified in the question. To grow pumpkins, Warner leases 1 eld for $60 a day Average total cost (dollars per pumpkin) Question list I6 and capital for $40 a day and hires students at $90 a day. 2 50 Suppose that Warner now leases 2 fields for $120 a day A'FC and twice as much capital for $80 a day. 1 _ 2.00 Question 14 The graph shows two average total cost curvesATC1 is Warner's average total cost curve when he farms 1 eld and ATC2 is his average total cost curve when he farms 2 150 6) Question 15 f'e'ds' Does Warner experience constant returns to scale, 1'00 economies of scale, or diseconomies of scale? C) Question 16 MC2 ' ' ' 0.50 Warner experiences economies of scale when his Question 1 7 long-run average cost curve is and he [ 0.00 0 200 400 600 800 1000 12001400 experiences diseconomies of scale when his long-run Quantity (pumpkins per day) average cost curve is 0 Question 18 C) A. upward sloping; horizontal C) B. downward sloping; horizontal _ C) C. horizontal; upward sloping 0 Question 19 a (J D. upward sloping; downward sloping C) E. downward sloping; upward sloping 0 Question 20 K Peter's birdhouse factory rents equipment for Question list constructing birdhouses and hires students. Total Total variable Total Labor product Peter pays $100 a day for equipment and $120 cost cost (workers (birdhouses per Question 17 a day for each student hired. per day) day) (dollars per day) The table shows Peter's total product schedule. 2 66 3 108 O Question 18 4 142 . . . 5 170 O Question 19 Construct Peter's total variable cost and total cost schedules. Fill in the columns in the table. What does the difference between total cost and O Question 20 total variable cost at each output equal? At each output, total cost exceeds total variable cost by the firm's Question 21 O A. total fixed cost O B. average total cost O Question 22 O C. marginal cost O D. average fixed cost O Question 23