What does "there is no such thing as a free lunch" mean in economics?
A. That scarce resources are used up to provide "freebies" and giveaways
B. That sometimes people may take friends out to lunch and pay for them
C. That all items in the lunch menu have specific prices
D. That products only have value because people are willing to pay for them
Answer: A
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The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average variable cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $20 E) $0.25
Which of the following is NOT true about the national income identity given by the equation:
A) If CA is positive, national saving finances the purchase of our goods by foreign users. B) If CA is negative, our investment exceeds our national savings. C) A negative CA may imply that foreigners have confidence in the U.S. economy. D) If CA is negative and large, a country risks foreigners owning a large piece of its assets. E) None of the above.
The product approach to measuring GDP values government production at
A) market prices. B) its cost of production. C) its estimated value to society. D) the total amount of taxes it collects.
The game in the figure shown is a version of:
A. the prisoner's dilemma.
B. the first-mover advantage.
C. a sequential game.
D. a repeated game.