Marginal cost is best defined as
a. a cost that does not vary with the rate of output.
b. the difference between fixed and variable cost at any level of output.
c. the amount added to total cost when one more unit of output is produced.
d. the difference between price and average total cost at the profit-maximizing level of output.
C
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A "flight to quality" in global asset markets in September and October 2008 caused an increase in the demand for ________
A) emerging-market equities B) luxury automobiles C) dollar assets D) blue-chip stocks
If the annual interest rate is 0%, the net present value of receiving $550 in the next year is
a. $550 b. $551 c. $549 d. $500
A bagel cost $1 in New York and 0.5 euros in Paris. If the real exchange rate is one-half of a New York bagel for a Parisian bagel, how many euros should you receive in exchange for one dollar?
A. 1.5 B. 0.1 C. 2 D. 0.25
When a government increases an effective price ceiling for a product
A. the surplus in the market will be reduced. B. the shortage in the market will be reduced. C. the shortage in the market will be increased. D. the surplus in the market will increase.