Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more pizza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?
A) The marginal cost of producing pizzas is constant.
B) The marginal cost of producing pizzas is falling.
C) The marginal cost of producing pizzas cannot be determined without more information.
D) The marginal cost of producing pizzas is rising.
Answer: D
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Which of the following is a TRUE statement concerning economic growth?
A) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl. B) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures. C) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with. D) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries.
The quantity theory of money is a proposition about
A) the nominal interest rate and the quantity of money demanded. B) the Fed's methods used to change the quantity of money. C) nominal and real interest rates. D) the relationship between financial assets and currency demanded. E) the relationship between a change in the quantity of money and the price level.
Persuasive advertising influences demand by:
A. altering the underlying tastes of consumers. B. providing information about the availability of a product. C. offering reduced prices for the product. D. none of the statements are correct.
Required reserves are a fixed percentage of their
A. deposits. B. loans. C. government bonds. D. none of these.