Average fixed costs for a given level of output can be determined graphically by:
A. summing the marginal costs of any number of units of output and dividing the sum by that
output.
B. the vertical distance between TC and TVC.
C. the vertical distance between AVC and MC.
D. the vertical distance between ATC and AVC.
Answer: D
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The circular flow of income assumes that
A) the national income accounting approach is not an adequate way to measure the economy's performance. B) profit is not a cost of production. C) goods and services flow in one direction and money payments flow in the other. D) total income is the sum of the value of intermediate goods and final goods and services.
Suppose that you are an Israeli citizen and had invested in a one-year U.S. bond that yielded 5 percent. The bond cost $5,000 and paid $5,250 at the end of the year. At the time you bought the bond, the exchange rate was 3.8 shekels/dollar
How many shekels did the bond cost? If the exchange rate fell to 3.5 shekels/dollar over this time period, what would the return on your investment be?
Potential GDP is the level of output produced when the unemployment rate is
A) equal to the natural unemployment rate. B) greater than the natural unemployment rate. C) less than the natural unemployment rate. D) zero. E) made up of only cyclical unemployment.
What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?