Other things equal, if the prices of a firm's variable inputs were to fall:
A. one could not predict how unit costs of production would be affected.
B. marginal cost, average variable cost, and average fixed cost would all fall.
C. marginal cost, average variable cost, and average total cost would all fall.
D. average variable cost would fall, but marginal cost would be unchanged.
Answer: C
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Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.
Over the long run, monopolies can earn
A) economic profit. B) normal profit only. C) accounting profit only. D) no economic profit.
Cyclical unemployment refers to
a. the portion of unemployment created by job search. b. short-run fluctuations around the natural rate of unemployment. c. changes in unemployment due to changes in the natural rate of unemployment. d. the portion of unemployment created by wages set above the equilibrium level.
The present value of $1 received 1 year from now, given the current interest rate of 7%, is about
A. $.90. B. $.91. C. $.93. D. $1.00.