Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average fixed cost?
A. Curve 1
B. Curve 2
C. Curve 3
D. Any of the 3 could be AFC.
Answer: B
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The money multiplier:
A. Is equal to the required reserve ratio times transactions deposits. B. Gets larger as the required reserve ratio increases. C. Is the reciprocal of the required reserve ratio. D. Represents the lending capacity of an individual bank.
The Leontief production function implies:
A. L-shaped isoquants. B. convex-shaped isoquants. C. straight-line isoquants. D. A positive MRTS.
Which of the following does not represent real GDP?
A) GDP in current dollars B) GDP in terms of goods C) GDP in base year dollars D) GDP in constant dollars
The main function of public-sector macroeconomic analysts is to
A. engage in theoretical research. B. find ways to increase corporate profits. C. forecast the developments in industries. D. assist in policymaking.