Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If there are diseconomies of scope, then which of the following must be TRUE?
A) a = b
B) a + b = -c
C) c > 0
D) c < 0
C
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When all changes in the world are due to
A) fiscal policy, purchasing power parity holds true in the long run. B) monetary policy, purchasing power parity does not hold true in the long run. C) monetary policy, purchasing power parity holds true in the long run. D) monetary policy, purchasing power parity holds true even in the short run. E) fiscal and monetary policy, purchasing power parity holds true in the long run.
In general, activists are ________ about the ability of fiscal and monetary policies to stabilize AD and non-activists are ________
A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic
When represented graphically, the government's demand for funds curve is
a. downward sloping b. upward sloping c. vertical d. initially downward sloping, then upward sloping e. initially rightward sloping, then downward sloping
The clearing corporation's main role in the futures market is to:
A. provide the underlying assets so the contracts can be created. B. set the market price of the contract. C. act as the counterparty to both sides of the transaction, thereby guaranteeing payment. D. all of the above.