In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be:
a. $25.
b. $2,500.
c. $5,000.
d. $7,500.
b
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What do Fannie Mae and Freddie Mac have in common?
A) They are both investment banks. B) Both firms issue bonds on behalf of the government. C) Both firms went out of business in the 2008 financial crisis. D) They are both pension funds. E) They are both government-sponsored mortgage lenders.
When using the principle of comparative advantage, the person with no absolute advantage should perform the job in which he or she has
a. a 50 percent disadvantage. b. a 75 percent disadvantage. c. a lesser disadvantage. d. been trained.
If the inflation rate is 5 percent and the real rate of interest is 3 percent, the nominal interest rate is
A) 8 percent. B) 5 percent. C) 3 percent. D) 2 percent.
What might an "anti-inflation hawk" do so that good macroeconomic performance is likely to continue under his or her successors as head of the central bank?
What will be an ideal response?