If in the short run a firm's total product is increasing, then its:
A. marginal product must also be increasing.
B. marginal product must be decreasing.
C. marginal product could be either increasing or decreasing.
D. average product must also be increasing.
Answer: C
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If firms and workers could predict the future price level exactly, the short-run aggregate supply curve would be
A) downward sloping. B) horizontal. C) upward sloping. D) vertical.
By designating Federal Reserve currency as legal tender, the federal government
A) has ensured that Federal Reserve currency will serve as money. B) has guaranteed that Federal Reserve currency may be exchanged for an equivalent amount of gold or silver. C) has mandated that Federal Reserve currency be accepted for payment of debts. D) has mandated that Federal Reserve currency be accepted by citizens of foreign countries in exchange for their countries' currencies.
Which of the following financial market developments has helped to remove financial constraints faced by people?
a. Online stock trading b. Bank credit cards c. Derivatives trading d. ATM/Debit cards
A normative statement: a. describes the self-interested behavior of individuals
b. describes the world as it is. c. describes how the world should be. d. describes how sunk costs do not affect current decisions.