The Average Total Cost curve will be cut by the Marginal Cost curve from below as long as
A. average costs are decreasing.
B. marginal costs eventually increase.
C. fixed costs are rising.
D. marginal costs continually decrease.
Answer: B
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Economic analysis that focuses on the economy as a whole is called
a. macroeconomics b. microeconomics c. positive economics d. normative economics e. macrometrics
Trade restrictions can prevent purchasing power parity from holding because:
A. they can add costs to the selling price because they add to the seller's cost. B. the time and energy of importation paperwork can add to the cost of the good sold. C. tariffs can add to the cost of the good sold. D. All of these statements are true.
The more staggered are labor contracts,
A) the more rapidly the economy will adjust to changes in aggregate demand. B) the less rapidly the economy will adjust to changes in aggregate demand. C) the greater the inflationary effects of a given change in money growth in the medium run. D) the less inflationary effects of a given change in money growth in the medium run.
Refer to the information provided in Table 25.8 below to answer the question(s) that follow.Table 25.8
Refer to Table 25.8. Alamo Bank could make additional loans of $750,000, if the required reserve ratio were
A. 12.5%. B. 10%. C. 7.5%. D. 2.5%.