If average variable costs are increasing while average total costs are decreasing, then
A. fixed costs must be zero.
B. marginal cost must lie between average variable and average total costs.
C. marginal cost must equal average variable cost.
D. marginal cost must equal average total cost.
Answer: B
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The statement “Resources employed in producing X are better suited to making Y” is another way of saying resources
A. are specialized. B. are scarce. C. are used inefficiently. D. are unproductive. E. have no opportunity cost.
Transfer payments are:
A) included in GDP. B) not included in GDP. C) included in both GDP and GNP. D) none of the above.
If an estimated regression explains none of the variation, R2 will be
A) 0. B) between 0 and 1. C) 1. D) unable to determine with the information given.
Suppose your instructor gave hats with your school's logo to half of your economics classmates. She then asked these students to value the hats, and the average response was $9 per hat
Under the endowment effect, we should expect that the average value assigned by the economics students who did NOT receive the hats to be: A) higher. B) lower. C) the same. D) We cannot answer this question without knowing more about the risk preferences of the students.