A firm enters into a consent decree to avoid an even greater legal setback. If the terms of the consent decree effectively double the firm's fixed costs, then
a. marginal cost more than doubles
b. marginal cost doubles
c. marginal cost remains unchanged
d. average total cost remains unchanged
e. average variable cost doubles
C
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To the stockholder, corporate stock represents
A) a source of fixed interest income. B) a loan. C) ownership. D) a guaranteed return of principal.
Which statement is TRUE, according to economist Joseph Stiglitz?
A. IMF policies are sensitive to the human suffering its policies could create. B. The IMF takes a "hands off" approach as to how a country uses the money it is lent. C. The IMF was founded on the belief that there was a need for international pressure for countries to have expansionary economic policies. D. The IMF was founded on the belief that there was a need for international pressure for countries to cut deficits, raise taxes and interest rates.
Which of the following contribute to productivity growth?
A) investment in plants and equipment B) innovation resulting in new products C) innovation resulting in new processes D) all of the above
The portion of the Obama stimulus package that cut taxes is best thought of as
A. discretionary (and contractionary) fiscal policy. B. monetary policy. C. nondiscretionary fiscal policy. D. discretionary (and expansionary) fiscal policy.