A rising short-run average variable cost of production for a firm indicates that
A. marginal cost is below average variable cost.
B. average fixed cost is constant.
C. marginal cost is above average variable cost.
D. average total cost is at its maximum.
Answer: C
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As a store of value, money
A) does not earn interest. B) cannot be a durable asset. C) must be currency. D) is a way of saving for future purchases.
As more pollution is abated, the total social benefit from pollution abatement increases
a. True b. False
The nominal interest rate is:
A. not adjusted for inflation. B. the interest rate paid by savers. C. the interest rate paid to borrowers. D. the price level adjusted interest rate.
When a firm has economic profits equal to zero
A) the firm is earning a normal rate of return on investment. B) the firm is not earning a normal rate of return on investment. C) the firm should shut down. D) the firm's accounting profits are also zero.