The marginal cost curve is U-shaped. Over the range of output for which the marginal cost is falling as output increases, the marginal product is
A) increasing.
B) decreasing.
C) constant.
D) probably changing, but there is no stable relationship between the marginal cost and the marginal product.
E) not defined.
A
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At the moment, the Federal Reserve keeps the discount rate above the fed funds rate. In so doing, they are
A) discouraging commercial banks from borrowing from the Fed. B) encouraging commercial banks to borrow from each other. C) doing both A and B. D) doing none of the above.
Which of the following is not crucial to the Harrod-Domar model?
a. population growth rate b. marginal propensity to save c. incremental capital-output ratio d. marginal propensity to consume e. all were crucial to the Harrod-Domar model
Advocates of the active approach believe that discretionary government policy can restore economic stability and improve economic performance
a. True b. False Indicate whether the statement is true or false
City streets, sewage systems, and police protection are all examples of:
a. public goods. b. private goods. c. exclusive goods. d. rival goods. e. consumer goods.