Which statement is true regarding average variable cost?
a. Average variable cost is the additional cost of producing one more unit of output.
b. The average variable cost curve will always lie below the curve for average total cost.
c. Average variable cost is obtained when variable cost is multiplied by quantity of output.
d. As output grows, average variable cost moves farther away from average cost.
b. The average variable cost curve will always lie below the curve for average total cost.
At any level of output, the average variable cost curve will always lie below the curve for average total cost. The reason is that average total cost includes average variable cost and average fixed cost.
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Which of the following is not a usual consequence of inflation?
A) Income is redistributed among people. B) People are misled into supposing that their earnings have risen substantially. C) People believe that rising prices have made them worse off. D) The cost of living goes up for everyone. E) The value of money falls.
Which the following is NOT an exogenous factor affecting economic growth that countries caught in a "poverty trap" might utilize to encourage economic growth?
A) human capital B) political capital C) infrastructure D) geographical location
Since the growth in the money supply is unrelated to government spending, fiscal policy and monetary policy can be conducted independently
a. True b. False Indicate whether the statement is true or false
How would imposing a minimum wage above the market-clearing wage affect employment in a competitive labor market?
A. Employment would increase as firms would illegally hire workers below the original competitive wage. B. Employment would increase as previously unemployed workers would be more encouraged to find a job. C. Employment would be unchanged as workers are nonresponsive to low wages. D. Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work. E. Employment would increase because a higher minimum wage would create more jobs for low-skilled workers.