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1) If Congress passed new laws significantly increasing the regulation of business, this action would tend to

•A) Increase per-unit production costs and shift the aggregate supply curve to the left
• B)Increase per-unit production costs and shift theaggregate supply curve to the right
• C)Increase per-unit production costs and shift . the aggregate demand curve to the left
• D)Decrease per-unit production costs and shift
•
4 ) An increase in productivity will:

•A Increase aggregate demand
•B Increase aggregate supply
•C Increase aggregate supply and aggregate demand
•D Decrease aggregate supply and aggregate demand

•5 ) Suppose that an economy produces 500 units of output. It takes 10 units of labor at $15 a unit and 4 units of capital at $50 a unit to produce this output. The per unit cost of production is:

•A $1.42
•B $1.24
•C $0.70
•D $0.40

6 ) If the prices of imported resources decrease, then this event would most likely:

•A Decrease aggregate supply
•B Increase aggregate supply
•C Increase aggregate demand
•D Decrease aggregate demand

•7 ) If the prices of imported resources increase, then aggregate supply will decrease.

True

False

•8 ) Which would most likely increase aggregate supply?

•A An increase in the prices of imported products
•B An increase in productivity
•C A decrease in business subsidies
•D A decrease in net exports

•9 ) Which would be one of the factors that increase aggregate demand?

•A An increase in personal income tax rates
•B An increase in the productivity of labor
•C An increase in consumer wealth
•D An increase in real interest rates

•10 ) A decrease in aggregate demand will have no effect on the real equilibrium GDP of the economy and will lower its price level.

True

False

•11 ) Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50 and the price of each input is $9. The per-unit cost of production is:
A. $0.67

•A $1.50
•B $0.67
•C $55.00
•D $33.33

•12 ) The aggregate demand curve shows the:
•A Inverse relationship between the price level and real GDP purchased
•B Direct relationship between the price level and real GDP produced
•C Inverse relationship between interest rates and real GDP produced
•D Direct relationship between real-balances and real GDP purchased

•13 ) A fall in prices of imported resources will cause aggregate:

•A Supply to increase
•B Demand to increase
•C Supply to decrease
•D Demand to decrease

•14 )The long-run aggregate supply curve slope is horizontal.

True

False

15 ) Which would most likely shift the aggregate supply curve? A change in:

•A Consumer expectations
•B Government spending
•C Excess capacity in business
•D Prices of imported resources

16 ) An increase in aggregate demand is most likely to be caused by a decrease in:

•A The wealth of consumers
•B Consumer confidence
•C Interest rates for home mortgages
•D The tax rates on household income

17 ) The aggregate demand curve is the relationship between the:

•A Price level and the sales of producers
•B Price level and the purchasing of real domestic output
•C Price level and the distribution of real domestic output
•D Real domestic output bought and the real domestic output sold

18 ) Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50 and the price of each input is $9. The level of productivity in this economy is:

• A 5
• B 6
• C 9
• D 50

19 )The long-run aggregate supply curve slope is horizontal
True

False

20 ) An aggregate supply curve shows the:
•A) Level of real domestic output which will be produced at each possible price level
• B)Level of real domestic output which will be purchased at each possible price level
• C)Price level at which real domestic output will be purchased
• D)Price level at which real domestic output will be in equilibrium

21)Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50 and the price of each input is $9. If the price of each input decreased from $9 to $7, productivity would:

•A Decrease and aggregate supply would decrease
•B Increase and aggregate supply would increase
•C Remain unchanged and aggregate supply would increase
•D Remain unchanged and aggregate supply would

Please some one give me the answers this is very importan to me.

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increase per-unit production costs and thus increase aggregate demand.

increase per-unit production costs and thus increase aggregate supply.

increase per-unit production costs and thus decrease aggregate supply.

increase aggregate demand and increase aggregate supply.

The Fine Point Company currently produces all of the components for its one product; an electric pencil sharpener. The unit cost of manufacturing the motor for this pencil sharpener is:

Direct Materials – $ 1.75
Direct Labor – $ 1.65
Variable Overhead – 0.75
Fixed Overhead – 0.60

The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $3.60 per unit. The relevant cost of manufacturing the motor to be considered in reaching the decision is:

A. $4.75.
B. $4.15.
C. $3.55.
D. $4.05.

Hi, all of the costs add up to A. $4.75 But I don't think that is right. I read relevant costs are costs that are relevant with respect to a particular decision. A relevant cost for a particular decision is one that changes if an alternative course of action is taken and costs that are relevant are those that differ as between the alternatives being considered.

I am lost and confused. Can anyone help or explain more? Thanks.

Behind the air traffic control problems
At least nine fatigue-related incidents have been reported since mid-February, prompting everyone from lawmakers to the general public to ask what can be done to solve the problem in air traffic control towers.

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