When one is considering costs of taking a trip in their car, the average cost per mile includes some items of cost that are not included in the marginal cost of a mile driven. This statement is
A. absurd because marginal costs do not apply to mileage costs.
B. always false.
C. always true.
D. sometimes true and sometimes false depending on the circumstances.
Answer: C
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Rent control is typically imposed ostensibly for the purpose of helping the poor. Why might you be able to argue that few poor people will actually be the beneficiaries of such controls?
What will be an ideal response?
The stated interest rate on a loan is the
A) nominal interest rate. B) real interest rate. C) actual inflation rate. D) expected inflation rate.
What are the major components of M1? What are the major components of M2? Describe each component
What will be an ideal response?
In the production of goods and services, trade-offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.