The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is
A) positively sloped.
B) negatively sloped.
C) vertical.
D) horizontal.
Answer: C
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Economics is primarily the study of:
A) the mental functions and behavior of individuals and groups. B) the state, nation, government, and politics and policies of governments. C) the problems related to existence and evolution of society. D) how agents choose to allocate scarce resources and how the choices affect society.
User cost is equal to ________
A) interest cost plus the expected rate of change in the real price of capital plus depreciation B) interest cost minus the rate of depreciation C) interest cost minus the expected rate of change of the real price of capital plus depreciation D) interest cost plus depreciation
If countries 1 and 2 produce only two goods, A and B, and they have the same opportunity cost for the production of good A (and thus good B), then
A) each country will specialize in the production of one good and engage in trade. B) neither country will specialize in the production of a good, but both will engage in trade. C) one country will specialize in the production of a good, and both will engage in trade. D) neither country will specialize in the production of a good, and there will be no incentive for trade.
What is the marginal net benefit of producing the fourth unit?No. units producedTotal RevenueTotal costs0001100502180110325018042902705310380
A. 40 B. -50 C. 60 D. 0