Which of the following conditions best explain the short-run economies of operation associated with production of an information product?
A) AVC slopes downward, and AFC is constant, so that ATC slopes downward.
B) AVC is constant, and AFC slopes downward, so that ATC slopes downward.
C) AFC is constant, and MC slopes downward, so that AVC slopes downward.
D) MC is constant, and MC slopes upward, so that AVC slopes upward.
Answer: B
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Given that most investors tend to be risk averse,
A) no one buys risky assets. B) there's a trade-off between risk and return. C) low risk assets provide the best return. D) it must be a superior strategy compared to one that is risk loving.
Trilemma refers to policy conflicts among:
A) fixed exchange rate, monetary autonomy, and free capital mobility goals. B) floating exchange rate, monetary autonomy, and free capital mobility goals. C) fixed exchange rate, monetary autonomy, and floating exchange rate goals. D) floating exchange rate, fiscal autonomy, and monetary autonomy goals.
The copper, aluminum, cement, and industrial alcohol industries are examples of:
A. interproduct competition. B. homogeneous oligopoly. C. monopolistic competition. D. differentiated oligopoly.
Stock prices are
A) based more on the current profitability of firms than on their expected future profitability. B) based less on the current profitability of firms than on their expected future profitability. C) based equally on the current profitability of firms and on their expected future profitability. D) not based on the current profitability of firms or on their expected future profitability.