Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. As you increase your production of t-shirts, your average fixed cost ________ and your marginal cost ________.
A. decreases; increases
B. increases; decreases
C. stays the same; increases
D. decreases; stays the same
Answer: D
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The Fed can increase the federal funds rate by
A) buying Treasury bills, which increases bank reserves. B) selling Treasury bills, which decreases bank reserves. C) buying Treasury bills, which decreases bank reserves. D) selling Treasury bills, which increases bank reserves.
If the German interest rate is 4% and the U.S. interest rate is 5%, what is the expected change in the value of the dollar in terms of the euro?
A) 1% B) -1% C) 9% D) -9%
Nonparticipants in the labor force include those who are classified as unemployed
Indicate whether the statement is true or false
When a region can produce a good or service at a lower opportunity cost than others, it is said to have a(n) ______ advantage.
a. comparative b. productivity c. specialized d. absolute