Adam Smith noted in 1776 that
A. the wealth of nations comes from the money the nations have accumulated.
B. the wealth of nations comes from the gold the nations have accumulated.
C. the wealth of nations comes from the resources that produce the nation's goods and services.
D. the problem of scarcity had been licked.
C. the wealth of nations comes from the resources that produce the nation's goods and services.
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________ is the economic framework that describes an individual's optimal actions in settings where interactions with others determine her well-being
A) Game theory B) Utility Optimization C) Strategic Equilibrium D) Best Response model
(Requires Appendix material) Which of the following statements is correct?
A) TSS = ESS + SSR B) ESS = SSR + TSS C) ESS > TSS D) R2 = 1 - (ESS/TSS)
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the long run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week b. Shut-down as price is lower than average cost c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
Which statement is false?
A. The break-even point lies on the firm's short-run supply curve. B. The firm's short-run and long-run supply curves both run along the marginal cost curve. C. In the short run a firm losing money will operate if the price is between the break-even point and the shutdown point. D. The lowest price acceptable to a firm in the short run is at the break-even point.