A perfectly competitive firm is making an economic profit when
A) its total revenue is greater than its total cost.
B) the price is greater than the minimum of its average total cost.
C) the price is greater than the minimum of its average variable cost.
D) Both answers A and B are correct.
D
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Direct finance involves the sale to ________ of marketable securities such as stocks and bonds
A) households B) insurance companies C) pension funds D) financial intermediaries
An investor who diversifies by purchasing a 50-50 mix of two stocks that are not perfectly positively correlated will find that the standard deviation of the portfolio is:
A. greater than the standard deviation from holding the same balance in only one of these stocks. B. the sum of the standard deviations of the two individual stocks. C. less than the standard deviation from holding the same balance in only one of these stocks. D. greater than the sum of the standard deviations of the individual stocks.
In the derivation of TFC, you find
A. the minimum-slope ray out of the origin to the TVC. B. the vertical intercept of the TC and draw a horizontal line. C. the minimum-slope ray out of the origin to the TC. D. the minimum-slope ray out of the origin to the ATC.
If policy makers were worried about the inflationary potential of an economy, which of the following would be an appropriate fiscal policy measure?
a. ?A decrease in government purchases b. ?A decrease in consumption taxes c. ?Open market operations d. ?Deficit spending e. ?An increase in transfer payments