Marginal cost
A. equals both average variable cost and average total cost at their respective minimums.
B. is the difference between total cost and total variable cost.
C. declines continuously as output increases.
D. rises for a time but then begins to decline when diminishing marginal returns set in.
Answer: A
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The classical model of Malthus predicted that economies would
A) continue to grow indefinitely. B) experience rapid technological progress. C) reach a state where the growth of real GDP per person stopped. D) experience significant productivity growth.
In modern economies,
A) restrictions on international labor mobility are common. B) labor is far more mobile internationally than capital. C) restrictions on international labor mobility are rare. D) labor is far more mobile internationally than it is intra-nationally. E) outsourcing increases international labor mobility.
The circular flow of economic activity is a model of the:
a. role of unions and government in the economy. b. influence of government on business behavior. c. flow of goods, resources, payments, and expenditures between the sectors of the economy. d. influence of business on consumers.
Which of the following items is not included in the most narrow definition of money, M1?
a. currency b. savings deposits c. traveler's checks d. demand deposits