Whenever average total cost exceeds marginal cost,
a. average total cost is rising.
b. average total cost is falling.
c. marginal cost is rising.
d. marginal cost is falling.
B
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Banking regulation in the United States is strongly influenced by the large amount of __________ deposits and __________ assets banks hold
A) time; illiquid B) time; liquid C) checkable; illiquid D) checkable; liquid
It can be rational to play tit-for-tat in a repeated Prisoners' Dilemma game
A) only if the game is played an infinite number of times. B) if the game is played an infinite number of times, or if it is uncertain how many times it will be played. C) only if the game is played a finite number of times, and that number is known by all the players in advance. D) for n-1 of the n periods it will be played, if n is known in advance. E) at no time; tit-for-tat is an irrational strategy in this situation.
Expansionary monetary policy:
A. decreases the interest rate and increases the price level. B. decreases the interest rate and decreases the price level. C. increases the interest rate and increases the price level. D. increases the interest rate and decreases the price level.
If the labor force in an economy is not fully employed, then
a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier