Marginal cost:
A. equals both average variable cost and average total cost at their respective minimums.
B. is the difference between total cost and total variable cost.
C. rises for a time, but then begins to decline when diminishing returns set in.
D. declines continuously as output increases.
Answer: A
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Financial markets are:
A. in many ways the purest expression of the market mechanism. B. a powerful tool for the efficient allocation of scarce resources. C. a global marketplace where sophisticated investors make billion-dollar decisions. D. All of these statements are true.
A bond is
A) a debt instrument, that is, the issuer has taken out a loan. B) an equity instrument, that is, the buyer has purchased ownership in the issuer's firm. C) the same thing as a stock. D) a short-term loan from the government.
McDonalds and many supermarkets offer vending machines in their stores that rent new movie releases for as low as $1.00 per day provided that they are returned in 24 hours before incurring a late fee
How can Netflix and Blockbuster compete against this type of service? Or is their something else going on there that doesn't first meet the eye?
Intermediation in the financial system is the process of:
A. bringing together buyers and sellers in a market. B. negotiating terms of repayment when agreements between buyers and sellers are in default. C. government intervention in a financial market. D. an arbitrator working with government and private firms to create an efficient financial system.