If the marginal product of an input is falling, then
A. marginal cost is rising.
B. average fixed cost is constant.
C. marginal cost is falling.
D. average total cost is constant.
Answer: A
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The figure above shows the demand and supply of dollars in the foreign exchange market. The equilibrium in the market occurs at a price of ________ Brazilian reals per dollar and a quantity of ________ billion dollars
A) 2.0; 100 B) 2.4; 120 C) 1.6; 100 D) 100; 2.0
Under a gold standard, if the market price of gold is below the official price of gold (set by the monetary authority) members of the public would likely buy gold _______________ and sell it __________________, causing the market price of gold to ____________________
A) from the monetary authority; in the gold market; fall B) from the monetary authority; in the gold market; rise C) in the gold market; to the monetary authority; fall D) in the gold market; to the monetary authority; rise
All the land in a California valley is owned by one person. The supply of land is fixed and is rented each year to farmers who bid for it in an open auction. Given the rents they must pay, the farmers barely earn subsistence. Sympathy for the poor farmers leads the state to bring in irrigation facilities to raise the productivity of the farms and raise the farmers’ income. The most likely outcome is
A. the farmers will be better off. B. the farmers and the landlord will share the new prosperity. C. only the landlord will be better off. D. no one will prosper.
Which of the following examples would use the three-step method?
a. Elena wants to determine what the marginal revenues are for her clothing store. b. Ivan wants to find out if his toy store is earning an economic profit. c. Jan wants to determine what the marginal costs are for his sports store. d. Zofia wants to find out if her thrift store is earning more total revenue than a competitor’s store.