The rate that the least risky firms pay on bonds that they issue is the
A. federal funds rate.
B. commercial paper rate.
C. triple-A corporate bond rate.
D. prime rate.
Answer: C
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Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases. b. average variable costs would be falling as output increases. c. average variable costs would be rising as output increases. d. marginal cost would be less than average variable cost.
The poverty line is adjusted each year to reflect changes in the
a. number of people currently on public assistance. b. level of prices. c. nutritional content of an "adequate" diet. d. size of a family.
Money facilitates trade because it:
A. requires carrying other goods around for barter. B. does not require a double coincidence of wants among individuals. C. requires a double coincidence of wants among individuals. D. does not require a medium of exchange.
Which of the following is a liability on a bank's balance sheet?
A) checkable deposits B) reserves C) loans D) all of the above E) none of the above