In the short run, an expansion of output always causes in an increase in:
a. TC.
b. AFC.
c. AVC.
d. MC.
QUESTION 2Bonds are debt securities maturing within 10 years.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3It has been observed that people surveyed shortly after major air crashes estimate higher probabilities that a given flight will crash than people surveyed during intervals without any. The error in reasoning observed in this experiment results from:
a. availability heuristics.
b. representative heuristics.
c. population heuristics.
d. selection bias.
QUESTION 4If a consumer is buying only two goods, A and B, then he or she will be in equilibrium only when MUa = MUb.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5In the short run, it is impossible for an expansion of output to cause an increase in:
a. ATC.
b. AVC.
c. AFC.
d. MC.
QUESTION 6Corporations can attract more lenders by offering a lower coupon on their bonds as compared to the government bonds.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7When a researcher evaluates the probability of an event by looking at how representative the sample is of the population of interest instead of the entire population, he is using:
a. an elimination heuristic.
b. an availability heuristic.
c. a representative heuristic.
d. a recognition heuristic.
QUESTION 8As the price of a good increases, the marginal utility per dollar spent on that good will also increase.
a. True
b. False
Indicate whether the statement is true or false
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