Which of the following statements is true?
A) The marginal cost curve intersects the average fixed cost curve at its minimum point.
B) When marginal cost is greater than average fixed cost, average fixed cost increases.
C) Average fixed cost does not change as output increases.
D) As output increases, average fixed cost becomes smaller and smaller.
D
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The transactions demand for money will shift to the
A. left when nominal GDP increases. B. right when the interest rate decreases. C. left when nominal GDP decreases. D. right when the interest rate increases.
Increase in business taxes will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
If a competitive firm maximizes shortminusrun profits by producing some quantity of? output, which of the following must be true at that level of? output?
A) p = MC. B) MR = MC. C) p ? AVC. D) All of the above.
The immediate primary cause of the swing from federal budget surpluses in 2000 and 2001 to a budget deficit in 2002 was:
A. the tax cuts of 2001. B. spending increases relating to the wars in Afghanistan and Iraq. C. the recession of 2001. D. the acceleration of inflation in 2001 and 2002.