Which of the following statements is false?
A) In the short run: total cost = fixed cost + variable cost.
B) Variable costs are costs that change as output changes.
C) An explicit cost is a nonmonetary opportunity cost.
D) In the long run there are no fixed costs.
C
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Off-balance sheet activities involving guarantees of securities and back-up credit lines
A) have no impact on the risk a bank faces. B) greatly reduce the risk a bank faces. C) increase the risk a bank faces. D) slightly reduce the risk a bank faces.
Fiona uses all of her income to purchase popcorn and butter. At any two points A and B on Fiona’s budget constraint,
a. Fiona is equally happy.
b. Fiona is spending more money on popcorn than she is spending on butter.
c. Fiona's income is different.
d. the price of popcorn relative to the price of butter is the same.
Give an example that shows how inefficiency relates to product differentiation for a monopolistically competitive industry.
What will be an ideal response?
An economic slow-down would cause the labor:
A. supply curve to shift left. B. supply curve to shift right. C. demand curve to shift left. D. demand curve to shift right.