If the average total cost of producing 2 pounds of cheese is $4 and the average total cost of producing 3 pounds of cheese is $4.2, then the marginal cost of producing third pound of cheese is equal to:
a. $4.2.
b. $8.
c. $4.5.
d. $4.6.
e. $4.1.
d
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How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
A) The demand for the yen will fall, and the supply of the yen will increase. B) The demand for the yen will fall, and the supply of the yen will fall. C) The demand for the yen will increase, and the supply of the yen will fall. D) The demand for the yen will increase, and the supply of the yen will increase.
Which of the following assertions is false?
A) The Great Depression was a typical business cycle. B) Very rapid growth occurred during World War II. C) Real GDP per capita dipped about 30% during the Great Depression. D) On average, the U.S. economy grows at a rate of 2.1%.
In order to survive, cartels must be able to enforce contracts. However, when a cartel is trading in an illegal commodity:
a. it can use the judicial system to enforce contracts. b. it relies on altruism of members to enforce contracts. c. it is inherently stable because the market is underground. d. violence becomes a means of contract enforcement. e. authorities are effective in preventing the trade.
What is the value of a newly issued 10-year bond with face value of $10,000 and no coupon payments? Assume the interest rate is 7 percent (0.07) per year
a. $0 b. $5,083.49 c. $10,000 d. $95,632.41 e. $100,000.00