Which of the following must be true if average total costs are rising?
a. Average fixed costs must be rising.
b. Total fixed costs must be rising.
c. Average variable costs must be falling.
d. Marginal costs must be greater than average total costs.
D
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In the neoclassical growth model, convergence is conditional upon two countries having
a. the same savings rates. b. the same depreciation rates. c. the same technology growth rates. d. the same population growth rates. e. all of the above.
If a firm's demand is subject to random fluctuations, the firm's ________ will also be random.
A) marginal revenue B) average total cost C) average variable cost D) marginal cost
Neoclassical economists who focus on potential GDP as the primary determinant of real GDP argue that the long-run aggregate _______________ curve is located at potential GDP.
a. demand b. supply c. production d. labor
The interest rate is determined by the
a. altruism or greed of bankers. b. demand for loanable funds. c. supply for loanable funds. d. supply and demand for loanable funds.