What are the seven short run cost calculations? How are they related?
The seven short run cost calculations are: TC, TFC, TVC, MC, ATC, AFC, and AVC. Note that TC = TFC + TVC; ATC = AFC + AVC. MC = (Change in TC) / (Change in Q) = (Change in TVC) / (Change in Q); ATC = TC/Q; AVC = TVC/Q; AFC = TFC/Q.
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Those from across the spectrum of political views tend to approve of markets because
A. markets are effective in solving many of society’s problems. B. markets work well in all cases and can be relied upon to solve problems. C. their goals are similar enough that they can rely on the same means. D. production is the most important goal, and market systems are very productive. E. All of these perspectives listed in these responses are correct.
The precise increase in the money supply that is potentially generated by a change in demand deposits is determined by the
a. bank's excess reserves b. actual money multiplier c. legal reserve requirement d. FDIC e. ratio of good to bad loans made by the banking system
If inflation is less than expected, who is wealth redistributed to?
Suppose a capital-abundant large country experiences a significant increase in its capital stock. This change in endowments is most likely to lead to
A. an improvement in the country's terms of trade. B. no change in the price of the labor-intensive good relative to the price of the capital-intensive good. C. an increased willingness to trade. D. a decreased willingness to trade.