If marginal cost is greater than average total cost, average total cost:
A. is falling.
B. is rising.
C. will not change.
D. is minimized.
Answer: B
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According to the Monetarists, the real effect of monetary policy on output is
a. long-lasting and unpredictable. b. predictable and beneficial. c. nonexistent in the short run. d. always less than fiscal policy
Instead of conducting laboratory experiments to generate data to test their theories, economists often
a. ask winners of the Nobel Prize in Economics to evaluate their theories. b. argue that data is impossible to collect in economics. c. gather data from historical episodes of economic change. d. assume that data would support their theories.
Political parties
A. have a large influence on setting the political agenda of candidates. B. are only concerned with market efficiency. C. have primaries that influence the party platform. D. have a large influence on setting the political agenda of candidates and are only concerned with market efficiency. E. have a large influence on setting the political agenda of candidates and have primaries that influence the party platform.
Brenda says, "You would have to pay me $50 to attend that pro wrestling event." For Brenda, the marginal utility of the event is:
A) zero. B) positive, but declines rapidly. C) negative. D) positive, but less than the ticket price.