In the short-run, when output is zero,
A. fixed cost is zero.
B. variable cost is zero.
C. total cost is zero.
D. All of the choices are correct.
B. variable cost is zero.
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If the marginal external cost of building a children's playground equals zero, then the i. marginal private cost equals the marginal social cost. ii. marginal social cost equals zero. iii. marginal private cost equals zero
A) i only B) ii only C) iii only D) ii and iii E) i and ii
Once the Federal Trade Commission's (FTC) Bureau of Consumer Protection investigators have decided that a company's advertising is illegal, it can do all of the following except which one?
A) prevent the company from selling its product B) attempt to convince the company to cease its advertising C) attempt to convince the company to change its advertising D) issue a cease -and-desist order
If the Fed is going to create an environment for economic progress, it should focus on
A) the regulation of financial institutions in order to control excessive risk taking. B) keeping interest rates low. C) shifting back and forth between expansionary and restrictive monetary policy in order to better control the growth of real GDP. D) the achievement of price stability.
If the Federal Reserve wanted to change the money supply in the economy, it would be least likely to:
A. buy bonds on the open market. B. sell bonds on the open market. C. change the level of reserves required to be held by banks. D. change the federal funds rate.