Much of the empirical evidence on the behavior of costs for real-world firms suggests that:
A) average costs functions are U-shaped as suggested by economic theory.
B) for most firms, marginal costs are declining in the range in which the firms operate.
C) for many firms, marginal and average variable costs are constant over wide ranges of output.
D) there is no relationship between the marginal and average variable costs of production.
C
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If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
a. do nothing to stimulate the economy. b. undertake fiscal policy to stimulate aggregate demand. c. undertake fiscal policy to stimulate aggregate supply. d. balance the budget to stimulate aggregate demand.
A sum of money to be received in the future is worth more than a sum of money today
a. True b. False Indicate whether the statement is true or false
Which of the following is the best example of an oligopolistic? industry?
A) public education
B) the beef market
C) the beauty products industry
D) the pharmaceutical industry
Interest sensitive consumption is negatively impacted by interest rates because when you
A. pay cash for something, the price you really pay depends on the interest rate. B. buy something on installments (like a car), your payments are positively related to the interest rate, so a higher interest rate would mean a higher payment, and therefore, less interest sensitive consumption. C. buy something you really need, the price you really pay depends on the interest rate. D. buy something on installments (like a car), your payments are negatively related to the interest rate, so a higher interest rate would mean a higher payment, and therefore, less interest sensitive consumption.