Assume that at the current level of output, price equals marginal revenue, but is less than average total cost. So long as price is greater than average variable cost, the firm should continue to operate in the short run to minimize its losses. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Holding all else constant, when a bank receives the funds for a deposited check A) cash items in the process of collection fall by the amount of the check. B) bank assets increase by the amount of the check. C) bank liabilities decrease by the amount of the check. D) bank reserves increase by the […]
Date: September 10th, 2020
The amount of cost cutting technical innovation introduced into a production process is a function of: A) technology only. B) technology and consumer acceptance. C) consumer acceptance only. D) none of the above. ANSWER B
Date: September 10th, 2020
Jim, a U.S. citizen, works only in Croatia. The value added to production from his employment is: A) included in only Croatian GNP. B) included only in U.S. GDP. C) included only in U.S. GNP. D) not included in either U.S. GDP or U.S. GNP. ANSWER C
Date: September 10th, 2020
The marginal product of a variable input is calculated as: A) the change in total product divided by the change in output. B) total product divided by the change in the variable input. C) the change in total product divided by the change in the variable input. D) total product divided by the total quantity […]
Date: September 10th, 2020
According to the expectations theory of the term structure, the interest rate on a long-term bond will equal the ________ of the short-term interest rates that people expect to occur over the life of the long-term bond. A) average B) sum C) difference D) multiple ANSWER A
Date: September 10th, 2020
The global financial crisis showed the need for increased financial regulation, however, too much or poorly designed regulation could A) choke off financial innovation. B) increase the efficiency of the financial system. C) increase economic growth. D) increase international financial integration. ANSWER A
Date: September 10th, 2020
The First Bank of the United States A) was disbanded in 1811 when its charter was not renewed. B) had its charter renewal vetoed in 1832. C) was fundamental in helping the Federal Government finance the War of 1812. D) None of the above. ANSWER A
Date: September 10th, 2020
________ is the narrowest monetary aggregate that the Fed reports. A) M0 B) M1 C) M2 D) M3 ANSWER B
Date: September 10th, 2020
When a firm decides to shut down in the short run, its losses are limited to its fixed costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
