If marginal cost is below average total cost, average total cost will
A) be maximized.
B) be decreasing.
C) be increasing.
D) remain constant.
B) be decreasing.
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To a Marxist, income inequality derives from
a. purely random events b. incompetent government policy c. unequal education d. unequal distribution of property e. unequal abilities of individuals
The marginal rate of substitution between two goods always equals the
a. marginal utility of one divided by the marginal utility of the other. b. marginal utility of one times the marginal utility of the other. c. price of one good divided by the price of the other. d. Both a and c are correct.
If the Fed pursues a strategy of targeting an interest rate when fluctuations in money demand are prevalent
A) fluctuations of nonborrowed reserves will be small. B) fluctuations of nonborrowed reserves will be large. C) the Fed will probably quickly abandon this policy, as it did in the 1960s. D) the Fed will probably quickly abandon this policy, as it did in the 1950s.
Which of the following is true?
a. Borrowers take bigger risks with their money than they would with other peoples' money b. Borrowers take bigger risks with other peoples' money than they would with their own c. Borrowers take big risks on investments regardless of whether it is their own money or not d. Borrowers should not be investing at all