The U-shape of the average variable, average total, and marginal cost curves reflects _____
A. the point that implicit costs become a smaller fraction of total cost as output increases.
B. both increasing and decreasing marginal returns.
C. increasing marginal returns.
D. decreasing marginal product.
E. decreasing marginal returns.
Answer: B. both increasing and decreasing marginal returns.
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An increase in the exchange rate from $2.00 = 1 € to $2.20 = 1 € is a
A) 10% depreciation of the euro with respect to the dollar. B) 10% depreciation of the dollar with respect to the euro. C) 10% appreciation of the dollar with respect to the euro. D) None of the above.
The majority of transactions in foreign exchange markets involve ________
A) transactions one the New York Stock Exchange B) exchanging one set of physical notes for another C) exchanging bank deposits denominated in different currencies D) buying and selling Treasury securities
The relationship between price and quantity demanded is said to be;
(a) Positive. (b) Negative. (c) Inverse. (d) Negative or inverse.
Given that income is $200 and the price of good Y is $40, what is the vertical intercept of the budget line?
A. 5 B. 1/5 C. 20 D. 8,000