If marginal cost is less than average cost, average cost must fall when more units are produced
a. True
b. False
Indicate whether the statement is true or false
True
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Compared to the United States, minimum wages are ________ and unemployment benefits ________ in Western Europe.
A. lower; less generous B. higher; less generous C. higher; more generous D. lower; more generous
Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses market basket A over market basket B. When she faces budget line b2, she chooses basket B over basket C
Which assumption of consumer theory helps us determine Denise's preference ordering over basket A and basket C? A) Completeness B) More is better than less C) Transitivity D) Convexity
Volatility clustering
A) is evident in most cross-sections. B) implies that a series is serially correlated. C) can mostly be found in studies of the labor market. D) is evident in many financial time series.
Everything else equal, an increase in the supply of loanable funds will
a. lower the interest rate and reduce investment spending b. lower the interest rate and increase investment spending c. increase the demand for funds d. increase the interest rate and reduce investment spending e. increase the interest rate and increase investment spending