Refer to the above graph. At output level H, the area:
A. 0AEH represents the firm's economic profit.
B. 0CGH represents the firm's total cost of production.
C. ACGE represents the firm's economic profit.
D. BCGF represents the firm's fixed costs of production.
Answer: D
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The velocity of money measures the
A. proportion of the money supply which is held as an asset. B. ratio of the transactions demand to the asset demand for money. C. average annual rate of increase in the money supply. D. number of times per year the average dollar is spent on final goods and services.
One of the reasons that a firm can be ________ efficient than a market is that the firm ________
A) more; does not have any economies of scale B) more; lowers transactions costs C) less; has economies of scope D) less; produces lower profits
Competition between banks
A) encourages greater risk taking. B) encourages conservative bank management. C) increases bank profitability. D) eliminates the need for government regulation.
When future labor income rises in a large open economy, it causes the current account to ________ and investment to ________
A) fall; rise B) rise; remain unchanged C) fall; fall D) rise; rise