In the above figure, the relationship between costs indicates that the distance between curves
A) A and B is equal to the fixed cost.
B) A and B is equal to the variable cost.
C) B and C is equal to the fixed cost.
D) B and C is equal to the average total cost.
A
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If a change in government spending causes "crowding in" in an open economy, which of the following might increase in addition to consumption and investment?
A) unemployment B) net exports C) supply and demand D) stock of capital
Refer to Figure 7-4. The efficient quantity of medical services is
A) 200. B) 500. C) 700. D) >700.
Federal funds loans are:
A. unsecured loans. B. collateralized loans between banks. C. guaranteed by the FDIC. D. secured loans between banks and the Fed.
A radio story reported a study on the makes and models of cars that were observed going through intersections in the Washington, D.C. area without stopping at the stop signs. According to the story, Volvos were heavily overrepresented; the fraction of cars running stop signs that were Volvos was much greater than the fraction of Volvos in the total population of cars in the D.C. area. This is
initially surprising because Volvo has built a reputation as an especially safe car that appeals to sensible, safety-conscious drivers. How is this observation best explained? a. Volvo drivers are not willing to take risks that they would take in another, less safe car. Driving a Volvo leads to a propensity to run stop signs. b. Volvo drivers are not willing to take risks that they would take in another, less safe car. Driving a Volvo reduces the propensity to run stop signs. c. Volvo drivers are willing to take risks that they would not take in another, less safe car. Driving a Volvo reduces the propensity to run stop signs. d. Volvo drivers are willing to take risks that they would not take in another, less safe car. Driving a Volvo leads to a propensity to run stop signs.