What is a primary reason for the yield on 3-month Treasury bills being low during recessions?
A) low risk premium
B) the Fed pushing short-term interest rates down
C) rising inflation
D) the inversion of the yield curve
B
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For a typical firm, the long-run average total cost curve:
a. is tangent to the minimum point of each possible short-run average total cost curves. b. is tangent to each possible short-run average total cost curve at one point. c. intersects each possible short-run average total cost curve at two points. d. passes through the minimum points of all possible short-run average total cost curves.
A 2 percent increase in the price of wheat leads to a 2 percent decrease in the quantity demanded of rice. The absolute price elasticity of demand is
A. 0.1. B. 6. C. 3. D. 1.
In a Dutch auction, the ________ wins the good
A) bidder who bids up to his value for the good B) bidder who stops the auction C) bidder with the lowest value for the good D) second bidder
The market price of physical capital is $10 and the market wage rate is $5. If a firm is optimally hiring an additional unit of physical capital, the value of the marginal product of physical capital is:
A) $1. B) $2. C) $10. D) $50.