Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.
A. positive; decreases
B. negative; increases
C. negative; decreases
D. positive; increases
Answer: D
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Which of the following best describes total fixed cost? a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced
c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies.
The Fed can reduce the federal funds rate by
a. decreasing the money supply. To decrease the money supply it could sell bonds. b. decreasing the money supply. To decrease the money supply it could buy bonds. c. increasing the money supply. To increase the money supply it could sell bonds. d. increasing the money supply. To increase the money supply it could buy bonds.
Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good. b) Private markets would not produce any of the good. c) Private markets produce public goods less efficiently than the government. d) Private markets would charge too high a price for the good.
At which point is society producing the most output possible with the available resources and technology? (See Figure 1.1.)
A. A. B. B. C. C. D. D.