If AVC is subtracted from the ATC, the result is:
a. economic profit
b. accounting profit.
c. average fixed cost.
d. marginal cost.
c
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Assuming all else equal, the demand curve for reserves in an economy shifts to the left. Which of the following could be a likely reason for this shift?
A) An increase in the federal funds rate B) A decrease in the federal funds rate C) Rapid contraction of the economy D) Rapid expansion of the economy
A decrease in default risk on corporate bonds ________ the demand for these bonds, and ________ the demand for default-free bonds, everything else held constant
A) increases; lowers B) lowers; increases C) does not change; greatly increases D) moderately lowers; does not change
Economic analysis requires both mathematical reasoning and historical study
a. True b. False Indicate whether the statement is true or false
In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:
a. a larger decline in the potential output of the capitalintensive good. b. a larger decline in the potential output of the labor intensive good. c. equal declines in the potential output of both the laborintensive and the capitalintensive good. d. a decline in the potential output of the labor intensive good and an increase in the potential output of the capitalintensive good.