The idea that consumers ultimately dictate what not to produce by choosing what not to purchase is known as
A. centralized decision making.
B. the economic problem.
C. consumer sovereignty.
D. laissez-faire.
Answer: C
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Which of the following will NOT affect the natural rate of unemployment?
A) minimum wage legislation B) restrictive monetary policy C) employer discrimination D) geographic immobility
The shutdown point of a perfectly competitive firm occurs at the minimum point of its average total cost curve
a. True b. False Indicate whether the statement is true or false
Suppose that price is below the minimum average total cost (ATC) but above the minimum average variable cost (AVC) and that the market price is expected to rise at least to ATC in the near future. In the short run, a firm that is a price taker would
a. immediately shut down and get out of the industry. b. continue to produce a quantity such that marginal revenue equals marginal cost. c. shut down temporarily, in hopes of restarting in the near future. d. cut price and expand output in hopes of achieving economies of scale
Suppose that in most car collisions between cars of unequal size, the smaller car sustains the most damage and its occupants suffer the most injury. In answering the following question, assume that, on average, smaller cars generate less air pollution than larger cars and that every person in the economy drives at least one car. Relative to driving an average car, driving a larger-than-average car generates:
A. an external cost. B. neither an external benefit nor an external cost. C. an external benefit. D. a prisoner's dilemma.