If, in the short run, the level of output is zero, which of the following statement is TRUE?
A) Total variable cost is zero but total cost equals total fixed cost, and both of the latter exceed zero.
B) Total cost and total fixed cost graphs will begin at the origin.
C) Total fixed cost will also be zero at first but will rise once output rises.
D) none of the above
Answer: A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
An external cost in the production of a good creates a difference between the
i. costs borne by the producer and the costs borne by society in general. ii. efficient quantity of output and the equilibrium quantity of output. iii. marginal social cost and the marginal private cost. A) i only B) iii only C) ii and iii D) i, ii, and iii E) i and iii
When the value of a currency is determined mostly by demand and supply, but with occasional government intervention, the exchange rate system is defined as
A) floating. B) fixed. C) Bretton Woods. D) managed float.
Explain how a well-functioning financial system can increase total factor productivity and promote economic growth
What will be an ideal response?