In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that fixed costs must:
A) be declining with output.
B) be positive.
C) equal zero.
D) We do not have enough information to answer this question.
C
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If a bond was to pay off one year from now for $440 and the interest rate is 10 percent, what is the price of the bond?
A) $44 B) $400 C) $440 D) $484
A tariff is a tax
A) on an exported good. B) on an imported good. C) imposed on all traded goods. D) imposed on people's income. E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.
If one tracks the prices of critical metals, one sees that
a. they have risen more slowly than the general rate of inflation. b. they have risen about as rapidly as the general rate of inflation. c. the prices indicate increasing scarcity of the metals. d. the prices have fluctuated too wildly to conclude anything.
The passage of new legislation requiring more extensive government regulation of business will most likely:
A. decrease aggregate demand. B. decrease aggregate supply. C. increase aggregate supply. D. increase aggregate demand.