Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases.
b. average variable costs would be falling as output increases.
c. average variable costs would be rising as output increases.
d. marginal cost would be less than average variable cost.
QUESTION 2If the number of people who want to sell off stocks are higher than those who want to buy it, the stock prices move up.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Decision makers who try their best for rationality but are constrained by limited information and processing abilities are referred to as:
a. irrational.
b. partially rational.
c. boundedly rational.
d. perfectly rational.
QUESTION 4If all consumers had identical preferences, then their marginal utility schedules would be the same.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5If both the marginal cost and the average variable cost curves are U-shaped, which of the following is true over the range of output for which the average variable cost curve has a negative slope?
a. The marginal cost curve must have a negative slope.
b. The average total cost curve must have a negative slope.
c. The marginal cost curve is below the average variable cost curve.
d. both (b) and (c) are correct.
QUESTION 6In order to induce risk-averse people to invest in risky ventures, an additional sum of money is often paid to them along with the return.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Which of the following is true of a human mind?
a. A human mind seldom makes consistent error-free calculations.
b. A human mind can attend to more than a handful of concepts at one time.
c. A human mind can fully analyze the interrelationships between different concepts.
d. A human mind can navigate through complex logic to correct conclusions.
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