The marginal-cost curve intersects the average-total-cost curve at the output level where average fixed costs are zero
a. True
b. False
Indicate whether the statement is true or false
False
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In the 1970s, U.S. consumers transferred their deposits from accounts in banks and thrifts to money market mutual funds because money market mutual funds: a. were more liquid
b. were less risky. c. paid higher interest rates. d. were guaranteed for a larger amount. e. were more liquid and paid higher interest rates.
Sort the following into cash transfer programs and in-kind transfers: - social security - SNAP - TANF - Medicare - Medicaid - housing assistance - earned income tax credit (EITC)
A. cash transfers: social security, SNAP, TANF, and Medicare; in-kind transfers: Medicaid, housing assistance, EITC B. cash tranfers: social security, housing assistance, Medicare, and Medicaid; in-kind transfers: EITC, SNAP, TANF C. cash transfers: social security, EITC, TANF; in-kind transfers: Medicare, Medicaid, SNAP, housing assistance D. cash transfers: EITC, TANF, SNAP; in-kind transfers: social security, Medicare, Medicaid, housing assistance
Nominal income per person in the United States in 1960 was about $2,800 per year, while in 1990 nominal income per person was about $21,000. This indicates that
A. people enjoyed a standard of living about 7.5 times higher in 1990 than in 1960. B. the average person would consider him/herself about 7.5 times happier in 1990 than in 1960. C. nominal income was about 7.5 times greater in 1990, but we can't tell if this increase is due to inflation, economic growth, or a combination of the two. D. a dollar in 1960 was worth less than a dollar in 1990.
Firms have inventories that they can draw down to meet an increase in demand. This will
A. increase the size of the multiplier, because firms will be able to respond more quickly to a change in demand. B. decrease the size of the multiplier, because output will not immediately respond to changes in demand. C. have no effect on the multiplier, because the MPC remains unchanged. D. either increase or decrease the multiplier, depending on the size of the MPC.