Whenever the marginal cost curve lies below the average total cost curve, the:
A. average total cost is decreasing.
B. average variable cost is increasing.
C. average total cost is increasing.
D. average variable cost is decreasing.
Answer: A
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Compared to a situation in which there is no change in the value of the dollar relative to the peso, in which of the following situations would you be worse off?
A) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars B) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars C) you borrow 10,000 pesos, you earn income in dollars, the dollar appreciates against the peso, you must pay back the loan in pesos D) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
A depreciation of Mexico's currency (the peso) means that
a. Mexico's exports will become more expensive b. it now requires fewer pesos to exchange for one unit of another currency c. Mexico's imports will become less expensive d. it now requires more pesos to exchange for one unit of another currency e. it now requires more of other currencies to exchange for one peso
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are called
A) physical capital. B) venture capital. C) entrepreneurship. D) productive capital.
According to long-run growth models, which of the following is least likely to increase potential output?
A. Higher levels of saving and capital accumulation B. More rapid development of growth-compatible institutions C. Increased levels of entrepreneurship D. Increased aggregate demand