Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. As you increase your production of t-shirts, your average fixed cost ________ and your marginal cost ________.
A. increases; decreases
B. stays the same; increases
C. decreases; increases
D. decreases; stays the same
Answer: D
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A rise in the value of a currency is called a(n)
A) consolation. B) integration. C) appreciation. D) depreciation.
The U.S. dollar will appreciate in value if
A) the demand curve for U.S. dollars shifts rightward. B) the demand curve for U.S. dollars shifts leftward. C) the supply curve of U.S. dollars shifts rightward. D) Americans choose to buy more foreign goods.
Funds held in bank accounts that can be withdrawn by depositors at any time without advance notice are called:
A. demand deposits. B. required reserves. C. free funds. D. flow funds.
If the United States imposed higher tariffs and more restrictive quotas that reduced imports,
A) employment in the U.S. would be higher. B) the U.S. would not gain at the cause expense to other countries. C) the U.S. would gain at the expense of other countries. D) the wage rates of U.S. workers would be higher.