Which of the Following Statements Is Not Correct

question 125

Multiple Choice

Which of the following statements is not correct?

• A)The marginal cost of the fifth unit of output equals the total cost of five units minus the total cost of four units.
• B)The total variable cost of seven units equals the average variable cost of seven units times seven.
• C)If marginal cost is rising, then average variable cost must be rising.
• D)The marginal cost of the fifth unit of output equals the total variable cost of five units minus the total variable cost of four units.

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Definitions:

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Normal Yield Curve

A graphical representation that shows interest rates on bonds of different maturities tend to increase the longer the term to maturity, under normal market conditions.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.