If the average variable cost curve is above the marginal cost curve, then
A. marginal costs must be increasing.
B. average variable costs must be increasing.
C. marginal costs must be decreasing.
D. marginal costs can be either increasing or decreasing.
Answer: D
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Which of the following statements concerning the International Monetary Fund is true?
a. The IMF was created to help finance economic development in poor countries. b. One of the principal aims of the IMF is to discourage international trade and encourage countries to become self-sufficient. c. The IMF lends money to countries experiencing large balance-of-payments surpluses. d. When the IMF lends currencies, it always insists on the borrowing country taking action to reduce its balance-of-payments surplus. e. The IMF obtains funds from annual membership fees charged to member countries.
Critics of advertising sometimes argue that the overall effect of advertising is to make people believe that possessing lots of material goods is the only route to happiness. These critics also believe that this is a misleading view of happiness. Hence, these critics:
A. worry that consumers' choices have positive externalities. B. worry that the resulting increase in consumption increases total utility. C. reject the idea that all is well if the economy produces what people demand. D. believe that distributional issues are the main problem with any economy.
If marginal revenue is $10 and marginal costs is $8, the firm should increase its output.
Answer the following statement true (T) or false (F)
The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future. B. unemployment rates may turn out to be higher than they are currently predicted to be. C. GDP grown may turn out to be higher than it is currently predicted to be. D. taxable incomes may turn out to be lower than they are currently predicted to be.