Which of the following cost curves is not generally U-shaped?
a. AFC.
b. AVC.
c. ATC.
d. MC.
QUESTION 2When you purchase a bond in the secondary market, you are lending money directly to the borrower.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3The logical (and sometimes illogical) shortcuts that people derive from experience which economize on their mental capabilities are called:
a. irrationalities.
b. heuristics.
c. statistical errors.
d. probabilities.
QUESTION 4Consumer equilibrium exists when the marginal utility per dollar of expenditure is the same for all goods and services.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5If a technological change reduced the amount of the variable input needed by a firm to produce a unit of output:
a. its AVC curve would shift down.
b. its ATC curve would shift down.
c. its MC curve would shift down.
d. All of the above would occur.
QUESTION 6Stock prices often fail to correctly reflect complete information about a company in the long run.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Which of the following is an example of money left on the sidewalk?
a. Overconfident small investors making poor stock-trading choices and failing to learn from experience.
b. A guitarist buying a high end model of a Fender Stratocaster when a low end version is available in the market.
c. A librarian purchasing the latest editions of several social science books.
d. A cancer patient insisting on getting treated at an expensive clinic instead of a general hospital.
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