If marginal cost is greater than average total cost, then
a. profits are increasing.
b. economies of scale are becoming greater.
c. average total cost remains constant.
d. average total cost is increasing.
d
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The demand curve for a public good is also called the
A) total social benefit curve. B) total welfare curve. C) total willingness-to-pay curve. D) marginal social benefit curve.
Bundle L contains 10 units of good X and 20 units of good Y. Bundle M contains 8 units of good X and 21 units of good Y. The consumer is indifferent between bundle L and bundle M. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following correctly expresses the marginal rate of substitution of good X for good Y between these two points?
a. The consumer will give up 1 unit of good X to gain 2 units of good Y. b. The consumer will give up 2 units of good X to gain 1 unit of good Y. c. The price of good X is twice as large as the price of good Y. d. The price of good X is half as large as the price of good Y.
National income accounting is defined as the
A. Assessment of the distribution of output. B. Measurement of aggregate economic activity. C. Use of economic theory to predict future income. D. Accounting cost associated with economic choices.
Does the money demand curve have a positive slope or a negative slope? Why does it have this slope? Explain why an increase in the variable on the vertical axis of the money demand curve causes either an increase or a decrease in the variable on the
horizontal axis of the money demand curve. What will be an ideal response?