Refer to Figure 8.1. At the profit-maximizing level of output, AVC is
A) $22.
B) $26.
C) $30.
D) $32.
E) $40.
B
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Which combination of signals is indicative that Fed policy is restrictive and that a shift to a more expansionary policy is in order?
a. Commodity prices are falling, and the dollar is appreciating. b. Commodity prices are rising, and the dollar is appreciating. c. Commodity prices are rising, and the dollar is depreciating. d. Commodity prices are falling, and the dollar is depreciating.
Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal interest rate, it can be expected that
A. borrowers will hope that prices fall. B. lenders will hope that prices rise. C. lenders will hope that the purchasing power of money will fall. D. borrowers will hope that prices rise.
Which of the following would be categorized as "land"?
A. timber B. buildings C. human capital D. entrepreneurship
Assume that Spain will either specialize in producing cars or TVs. What is their opportunity cost of producing 8 TVs?
