Which of the following is true of standard economic analysis?
A. It characterizes a firm as a black box that transforms inputs to outputs.
B. It applies basic economic tools to examine the effects of managerial decisions.
C. It focuses on the internal architecture of a firm.
D. It characterizes a firm as an organization that generates economic growth.
Answer: A
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What might be an incentive for you to take a class in summer school? List some of the benefits and costs involved in your decision. Would your choice be rational?
What will be an ideal response?
Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
The principal goal of the Treaty of Maastricht was the creation of a
a. fixed exchange rate system. b. floating exchange rate system. c. gold-exchange system. d. monetary union.
An economy is producing at the least-cost rate of production when:
A. marginal cost is greater than average total cost. B. price and marginal revenue are equal. C. price and the minimum average cost are equal. D. marginal revenue is greater than price.