In the short run, as output increases,
A. the difference between total cost and average variable cost decreases.
B. marginal cost eventually decreases.
C. the difference between average total cost and average variable cost decreases.
D. All of the above are correct.
Answer: C
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If the Canadian dollar price of a United States dollar increases from C$0.80 to C$1.00, it can be concluded that ________.
A. the Canadian dollar has appreciated in value relative to the United States dollar B. the United States dollar has depreciated in value relative to the Canadian dollar C. the Canadian dollar has depreciated in value relative to the United States dollar D. both countries are on the international gold standard
When we hear on the news, "The Fed has lowered interest rates today," the Fed has most likely
A) raised the discount rate. B) lowered the required reserve ratio. C) raised the federal funds rate. D) purchased government bonds.
The basic economic problem is essentially one of deciding how to make the best use of:
A. unlimited resources to satisfy limited economic wants. B. limited resources to satisfy limited economic wants. C. unlimited resources to satisfy unlimited economic wants. D. limited resources to satisfy unlimited economic wants.
An industry which has a 4-firm concentration ratio near 0 would best be described as
A. oligopoly. B. monopoly. C. perfect competition. D. monopolistic competition.