As output decreases, in the short run
A. the difference between total cost and average variable cost increases.
B. the difference between average total cost and average variable cost increases.
C. marginal cost eventually decreases.
D. All of the above are correct.
Answer: B
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Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Suppose a currency's value in the foreign exchange market is determined solely by market supply and demand without any intervention by the government authority, the currency has
A) a fixed exchange rate. B) a gold standard. C) a price control in its exchange rate. D) a floating exchange rate.
Most U.S. imports are
a. manufactured goods b. agricultural services c. petroleum and related products d. minerals such as bauxite and nickel e. military goods
The greater the MPC is, the ___ the slope of the demand curve.
a. greater b. smaller c. It depends on the trade balance. d. The slope of the demand curve does not depend on this.