Which of the following must be true if average total cost is rising?
a. Average fixed cost must be rising.
b. Total fixed cost must be rising.
c. Average variable cost must be falling.
d. Marginal cost must be greater than average total cost.
d
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What are the four types of bias that economist Bryan Caplan believes voters bring with them when they vote? Briefly explain each of these biases
What will be an ideal response?
If the price of a haircut (a normal good) increases, other things constant, the
a. demand for haircuts increases b. demand for haircuts decreases c. quantity demanded of haircuts decreases d. quantity demanded of haircuts increases e. demand for haircuts, or quantity demanded of haircuts decreases; they are the same thing
Assume the Fed decreases the money supply and the demand for money curve is fixed. In response, people will:
a. sell bonds, thus driving up the interest rate. b. buy bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. sell bonds, thus driving down the interest rate.
Has the worry that international trade will cause horrible environmental conditions as companies rush to build factories in countries with low environmental regulation come true?
a. No, multinational companies have built factories to the standards in developed countries. b. No, multinational companies have not built factories in countries with low environmental regulations. c. Yes, multinational companies build factories that pollute much more than their factories in developed countries. d. Yes, multinational companies move their companies to countries with the lowest environmental regulations.