29 terms

Econ 200

When U.S. assets are more attractive to foreign investors the demand for for dollars?
Increases and the dollar value of foreign currency falls.
A decrease in the US demand for foreign assets would be expected to decrease the:
demand for foreign currency and a decrease in the equilibrium value of foreign current
If $0.0146 trades for 1 peso, then the cost of one dollar in pesos is approximately:
9.56 pesos
An increase in the number of American taking vacations in Mexico would be expected to increase the value of the peso.
Marginal product is?
How much additional output will be come
Average product?
Total output / number of workers
All inputs are variable?
long run
Some inputs are fixed
short run
Short run decisions are?
constrained because some inputs are fixed while others are variable
Which of the following is and example of a short-run decision?
An auto mobile manufacturing company is considering whether or not to expand its existing workforce
Which of the following is an example of a long-run decision?
An automobile manufacturing company is considering whether or not to invest in robotic equipment to develop a more cost effective production technique
Which of the following costs is independent of ouput?
fixed cost
Total cost is?
the sum of variable cost and fixed cost
In the short run, average variable cost equal:
average total cost less average fixed cost
The minimum point of the average variable cost curve is reached at the output level at which:
average product is maximized
In the long run all inputs are variable in the short run some inputs are fixed.
Fixed costs remain the same regardless of the level of production.
If average fixed cost is $2 and average variable cost is $3, then total cost is $5
When average total cost is rising, the marginal cost curve must be above the average total cost curve
If marginal costs are rising , then average total costs are rising
The vertical distance between the average total cost and average variable costs curves falls as output rises
The increase in output obtained by hiring an additional worker is known as
the marginal product
output per worker is also called
average product
what kind of costs remain the same regardless of the level of production?
Variable costs?
change as output changes
Fixed costs plus variable costs equal:
total costs
Average variable cost is variable cost:
divided by output
The U shape of the average total cost curve reflects the fact that:
average productivity rises and then falls
The average variable cost curve is a mirror image of the:
average product curve