Refer to Figure 7.1. At output level Q2
A) average fixed cost is increasing.
B) average variable cost equals average fixed cost.
C) marginal cost is negative.
D) average total cost is negative.
E) none of the above
B
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In 2008 and 2009, the quantity theory of money did a ________ job of predicting year-to-year changes in the inflation rate because ________
A) good; interest rates behaved predictably B) poor; the Fed changed the growth rate of the quantity of money too quickly C) poor; velocity of circulation plunged D) good; real GDP remained stable E) poor; the price level and the velocity of circulation did not change
"A drop in the money supply lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise B) rose; fall C) fell; rise D) fell; fall
Describe the idea behind the cap-and-trade program for improving environmental quality. Explain how supply and demand determine the price for pollution rights in this case
Please provide the best answer for the statement.
Recall the Application about running a software programming business to answer the following question(s).If by starting your own software development business you are forced give up your job as a janitor, then the income you could have earned as a janitor is:
A. part of the opportunity cost of operating your software business. B. not part of the opportunity cost of operating your software business. C. part of the benefit of operating your software business. D. is an example of the principle of diminishing returns.