Which of the following explains why the marginal cost curve has a U shape?
A) Initially, the marginal product of labor falls, then rises.
B) Initially, the average product of labor rises, then falls.
C) Initially, the marginal product of labor rises, then falls.
D) Initially, the average cost of production rises, then falls.
Answer: C
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Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.
Demand curves and other economic relationships
A) are always linear. B) produce linear regression equations. C) can take many different functional forms. D) are dependent upon the type of advertising done.
Strategic dependence is found in
A) monopoly markets. B) oligopolistic markets. C) monopolistic competitive markets. D) perfect competitive markets.
The chair of the Board of Governors of the Federal Reserve is
a. appointed by the U.S. president. b. elected by the twelve Federal Reserve Banks. c. elected by member banks. d. appointed by Congress.