Marginal cost
A) cuts average variable cost and average fixed cost at their lowest point.
B) cuts average variable cost and average total cost at their lowest point.
C) rises and then falls.
D) is the mirror image of marginal product.
B
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The Roomba 570 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $10 worth of electricity to charge the Roomba
Lynn is a house cleaner and can vacuum 4 rooms in 1/2 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, which method is economically efficient if Lynn charges $20 per hour? $30 per hour? A) Lynn if she charges $20 or $30 per hour B) Lynn if she charges $20 per hour and Roomba if Lynn charges $30 per hour C) Roomba if Lynn charges $20 per hour and Lynn if she charges $30 per hour D) Roomba if Lynn charges $20 or $30 per hour
Are the goals of monetary policy in harmony or in conflict (a) in the long run and (b) in the short run?
What will be an ideal response?
Assume the economy is initially in equilibrium with real GDP equal to potential GDP. Other things equal, if the economy enters a recession, automatic stabilizers
A) reduce the magnitude of the multiplier and reduce the size of the decline in real GDP. B) reduce the decline in investment expenditures and therefore increase the real short-term interest rate. C) cause any decrease in real GDP to be offset by an equal decrease in the inflation rate. D) raise the interest rate to prevent the output gap from falling below equilibrium.
If Canada can produce 500 TV sets at the cost of 10 cars, while Mexico can produce 1,000 TV sets at the cost of 8 cars, we know the following:
a. Canada has a comparative advantage in TV production. b. Mexico has the absolute advantage in TV production. c. The two countries' joint output equals 1,500 TV sets and 18 cars without trade, but it will be higher after proper specialization and trade. d. Canada has a comparative advantage in car production. e. Canada produces more cars than Mexico does.