Leverage is thought to be:
A. the single reason for the Great depression.
B. a dangerous tool, especially for big companies who do not understand its risk.
C. the most widely used of hedging risk in markets.
D. a relatively riskless strategy used by companies to grow quickly.
Answer: B
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Refer to the figure above. Exports for this country equal
A) OA units of Z. B) AB units of Z. C) AC units of Y. D) AD units of Y.
Table 7-5 Stereos produced 0 1 2 3 4 5 6 Total cost (in $) 200 325 410 475 550 660 825 Table 7-5 shows short-run total cost figures for a stereo manufacturer. The short-run average variable cost of producing five stereos is
A. $92. B. $110. C. $132. D. $460.
Does it make sense to consider the returns to scale of a production function in the short run?
A) Yes, this is an important short-run characteristic of production functions. B) Yes, returns to scale determine the diminishing marginal returns of the inputs. C) No, returns to scale is a property of the consumer's utility function. D) No, we cannot change all of the production inputs in the short run.
Velocity is determined by:
A. the size of the government budget deficit. B. the Federal Reserve. C. payments methods and technology. D. average labor productivity times the population growth rate.