Dividing the total cost of undertaking n units of an activity by n reveals the:
A. units per cost.
B. average benefit.
C. marginal cost.
D. average cost.
Answer: D
You might also like to view...
The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):
a. increase in that bank's required reserves. b. decrease in that bank's required reserves. c. increase in that bank's excess reserves. d. decrease in that bank's excess reserves. e. decrease in the Fed's assets.
If the public correctly perceives that the central bank will reduce inflation, then
a. the short-run Phillips curve shifts right, and the sacrifice ratio will be higher. b. the short-run Phillips curve shifts right, and the sacrifice ratio will be lower. c. the short-run Phillips curve shifts left, and the sacrifice ratio will be higher. d. the short-run Phillips curve shifts left, and the sacrifice ratio will be lower.
A supply curve that is parallel to the horizontal axis suggests that:
A. the industry is organized monopolistically. B. the relationship between price and quantity supplied is inverse. C. a change in demand will change price in the same direction. D. a change in demand will change the equilibrium quantity but not price.
Using the ISLM model, explain and show graphically the effect of a fiscal expansion when the demand for money is completely insensitive to changes in the interest rate. What is this effect called?
What will be an ideal response?