What is the marginal cost of a good?
What will be an ideal response?
The marginal cost of a good is the opportunity cost of producing one more unit of it. The key is that the marginal cost refers to the cost of one additional unit, not to the total cost of producing all the units.
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The Fed purchases $100 million of U.S. government securities from First National Bank. The balance sheet for First National Bank shows ________ in its total assets and ________ in its total liabilities
A) no change; no change B) a $100 million increase; a $100 million increase C) a $100 million decrease; a $100 million increase D) a $100 million increase; no change E) a $100 million increase; a $100 million decrease
Potential GDP per labor hour can increase due to
A) increases in labor productivity. B) increases in the quantity of money. C) increases in population. D) decreases in the quantity of capital.