If production displays economies of scale, the long-run average cost curve is
A) above the short-run average total cost curve.
B) downward sloping.
C) upward sloping.
D) below the long-run marginal cost curve.
Answer: B
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The financial system provides risk sharing by allowing
A) borrowers to obtain funds either directly or indirectly. B) savers to earn interest tax-free. C) borrowers to convert liabilities into assets. D) savers to hold many assets.
Low wages may be traceable to all of the following except one. Which is the exception?
a. low productivity b. too much saving c. unstable business climate d. poor education and training e. lack of adequate physical capital supplied to labor
At zero units of output a firm's variable costs are zero.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 7.1 below to answer the following question(s). 
Figure 7.1Refer to Figure 7.1. A corn producer's profit is $200 and is producing 100 bushels of corn. Then he must have a cost per bushel of
A. $1. B. $2. C. $3. D. $4.