Which of the following holds true?
A) When the Marginal Product (MP) is rising, Marginal cost (MC) is rising; and when MP is falling, MC is falling.
B) When MP is rising, MC is falling, and when MP is falling, MC is rising.
C) When MP is rising, MC is constant, and when MP is falling, MC is negative.
D) There is no relationship between MP and MC.
B
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If market price is greater than the minimum of AVC but below the minimum of AC, then
A) the firm will shut down. B) revenue covers variable costs and some of the fixed costs and profit is positive. C) revenue covers variable costs and some of the fixed costs, although profit is negative. D) economic profit is zero.
A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside) the production possibilities curve.
A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to
A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. C) speak in specific terms about what needs to be done. D) a and c E) b and c
During an economic expansion, income ________, unemployment benefits ________ and the budget deficit ________.
A. rises; fall; rises B. rises; rise; falls C. falls; rise; rises D. rises; fall; falls