If the price of labor is constant and a firm experiences diminishing marginal product, then its
A. average variable cost increases.
B. fixed costs increase.
C. marginal costs decrease.
D. total costs decrease.
Answer: A
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When you use currency to buy lunch, money is performing which function?
A) store of value B) medium of exchange C) barter token D) unit of purchase E) unit of currency
If the price of propane-fueled gas grills was to decrease, then
A) the quantity of propane demanded would decrease. B) the demand for propane would increase. C) the quantity of propane demanded would increase. D) the demand for propane would decrease.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Politicians seeking reelection tend to do the following, except:
A. Inserting "earmarks" in legislation B. Favoring projects with clear benefits and hidden costs C. Favoring long-term projects over short-term ones D. Engaging in pork-barrel politics