Marginal cost
A. equals the slope of the total cost curve.
B. is calculated as DTC/DQ.
C. is the increase in total cost resulting from a one-unit increase in output.
D. All of the responses are correct.
Answer: D
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The difference between consumption and capital goods is that
A) only big corporations can afford capital goods. B) capital goods are used to produce additional goods while consumption goods are not. C) capital goods are provided by the government. D) consumption goods can be enjoyed by many people at the same time. E) it is illegal to export capital goods.
When aggregate demand increases,
A) the price level is likely to rise as GDP rises. B) the price level is likely to fall as GDP rises. C) aggregate supply will shift to the right. D) aggregate supply will shift to the left.
Under a flexible exchange rate system, which of the following will be most likely to cause a depreciation in the exchange rate value of the dollar (relative to the English pound)?
a. An economic boom occurs in England, inducing English consumers to buy more American-made automobiles, trucks, and computer products. b. Real interest rates in the United States fall lower than real interest rates in England. c. Restrictive monetary policy in the United States causes inflation to be lower than in England. d. Attractive investment opportunities in the United States induce English investors to buy stock in U.S. firms.
The following economy produces two products.ProductsProduction Possibilities?ABCDEFSteel012345Wheat100907555300Refer to the above table. A change from possibility C to B means that:
A. 1 unit of steel is given up to get 15 more units of wheat. B. 1 unit of steel is given up to get 75 units of wheat. C. 2 units of steel are given up to get 75 units of wheat. D. 2 units of steel are given up to get 15 more units of wheat.