Prices of money market instruments undergo the least price fluctuations because of
A) the short terms to maturity for the securities.
B) the heavy regulations in the industry.
C) the price ceiling imposed by government regulators.
D) the lack of competition in the market.
A
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Which of the following statements is true?
a. The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise. b. The marginal product is the change in total output by adding one additional unit of a fixed input. c. Fixed costs are costs which vary with the output level. d. When marginal productivity of a variable input is falling then marginal costs of production must be rising. e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
In the short run, profit maximization typically occurs where total revenue is at its maximum
a. True b. False
According to the classical model, an increase in the money supply causes
a. output to increase in the long run. b. the unemployment rate to fall in the long run. c. prices to rise in the long run. d. interest rates to fall in the long run.
Which of the following statements best expresses the law of diminishing marginal benefit?
A. The marginal benefit of the product increases as less of the product is consumed. B. The marginal benefit of a product decreases as less of the product is consumed. C. The total benefit from the product decreases as more of the product is consumed. D. The marginal benefit from a product increases as more of the product is consumed.