When the text refers to rational self-interest, it means
A. behavior that makes society better off.
B. behavior that hurts other people.
C. your focus on your own contributions to society.
D. your looking out for what is best for you as an individual.
Answer: D
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An example of someone bearing the burden of a negative production externality would be
A) Taylor living downwind from a smelly feedlot where pigs are raised. B) Jess's roommate smokes and she doesn't. C) Lynna's neighbors play loud music late at night. D) All of these are examples of someone bearing the burden of a negative production externality. E) None of these is an example of someone bearing the burden of a negative production externality.
The principle of minimum differentiation suggests that competitors
A) try to distinguish themselves by offering highly different products. B) try to gain the largest market share by differentiating a popular product. C) tend to make identical goods in order to appeal to the largest number of consumers. D) try to decrease costs by minimizing the differences in the types of resources used.
Suppose in Country X, anticipating high inflation in the economy, wages of workers are increased in the beginning of a financial year. However, prices remain unchanged during the year. Everything else remaining constant, which of the following will be observed in this economy?
a. The cost of labor, that is the real wage will decline b. The current profits of the firm will rise c. Aggregate supply in the economy will increase d. Annual production in the economy will remain unaffected e. The aggregate supply curve will move to the left
Economic profit is a key term in economics and is defined as total revenue
a. plus total cost b. minus marginal cost c. minus variable cost d. minus total cost e. minus fixed cost