Which of the following CANNOT be true at any output along a perfectly competitive firm's short-run supply curve?
A. Marginal cost is greater than average total cost.
B. Marginal cost is greater than average variable cost.
C. Average variable cost is greater than marginal cost.
D. Average total cost is greater than marginal cost.
Answer: C
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Which of the following pairs of goods are most likely substitutes?
A) DVDs and DVD players B) cola and lemon lime soda C) lettuce and salad dressing D) peanut butter and gasoline
Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Stanley purchases the novel, "Night of Sorrows" for his summer reading pleasure
A) K and G B) J and G C) J and M D) K and M
Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between workers and jobs because
A) help-wanted advertising falls during recessions. B) help-wanted advertising rises during recessions. C) workers spend a lot of time searching for work in recessions. D) people are indifferent between being employed or not.
Which of the following is TRUE of the Federal Reserve System? I. It was established in the early 1980s. II. It serves as the central bank of the United States
A) I only B) II only C) Both I and II D) Neither I nor II