Information products (e.g., software)
A) have relatively high fixed costs but low marginal and average variable costs.
B) have relatively low fixed costs but high marginal and average variable costs.
C) have relatively high fixed costs and relatively high marginal and average variable costs.
D) have relatively low fixed costs and relatively low marginal and average variable costs.
Answer: A
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What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the Canadian dollar:euro foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars. b. The Canadian monetary base falls. The amount depends on the size of the money multiplier c. The Canadian monetary base might fall or rise. d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars. e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.
Reducing government expenditure and increasing taxation is an example of which of the following policies?
(a) An expansionary monetary policy. (b) A contractionary monetary policy. (c) An expansionary fiscal policy. (d) A contractionary fiscal policy.
Under the adaptive expectations theory, people persistently
a. underestimate inflation when it is slowing down. b. overestimate inflation when it is accelerating. c. underestimate inflation when it is accelerating. d. adapt to the prevailing inflation rate quickly.
Which of the following formulas is used in step 3 of the three-step method for monopolistic competition?
a. TC = ATC ? q b. TR = P ? q c. TC = P ? q d. TR = ATC ? q