Which of the following is true of the typical relationship between marginal product (MP) and average product (AP)?
A) If MP is greater than AP, then AP is falling.
B) The AP curve intersects the MP curve at minimum MP.
C) The MP curve intersects the AP curve at maximum AP.
D) If MP is less than AP, then AP is increasing.
C
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The above table presents data from the nation of Pacifica. When real GDP equals $2.0 trillion, aggregate planned expenditure equals
A) $3.75 trillion. B) $5.00 trillion. C) $5.50 trillion. D) $4.00 trillion. E) $6.00 trillion.
The merchandise trade balance
a. reflects trade in intangibles like insurance and tourism b. includes personal gifts to friends abroad c. records the flow of financial assets like stocks and bonds d. equals the value of imports minus the value of exports e. equals the value of tangible products exported minus the value of tangible products imported
If a firm decides to produce a product that it once purchased from a firm upstream it has made a
A) horizontal decision. B) make or buy decision. C) downstream decision. D) sell or service decision.
While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking. It's because China is eager to protect its own tobacco industry which is a state monopoly. How would entry of foreign companies into the tobacco market affect the economic profit of the state monopoly?
A) Its economic profits would increase because of rent seeking activity. B) Its economic profits would decrease because of increased competition. C) Its economic profits would increase because of increased competition. D) Its economic profits would decrease because of rent seeking activity.