In order to determine whether to major in economics, a rational individual compares the ________ of the decision
A) normative benefits and positive costs
B) positive benefits and normative costs
C) marginal benefit and marginal cost
D) self-interest and social-interest
E) opportunity cost and the sunk cost
C
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Calling long distance is often more expensive on weekdays between 8 am and 5 pm than in the evening hours. Why is this the case?
A) Telephone companies hope to discourage customers from calling long distance during the day to keep their labor costs down. B) Businesses who must call suppliers or customers during business hours have few alternatives and therefore have an inelastic demand during the workday compared to after-work hours. C) The cost of making long-distance connections is higher during the day than in the evenings. D) Increasingly, businesses who must call suppliers or customers during business hours resort to the internet, thereby reducing demand for long-distance calls. To make up for this fall in demand, telephone companies charge higher rates.
Marginal physical product is
a. the increase in input usage resulting from an increase in revenue. b. the same as marginal revenue product. c. equal to average physical product when a monopoly firm is in equilibrium. d. the increase in output stemming from a one-unit increase in input.
Keynesian theory became important when classical economic theory did not adequately explain a prolonged period of:
A. Inflation with low unemployment. B. Inflation with high unemployment. C. Deflation with low unemployment. D. Deflation with high unemployment.
In Figure 5.7, assuming perfect competition, at MR3 there will be 
A. no pressure on the price to change. B. short-run pressure on the price to rise. C. short and long-run pressure on the price to rise. D. long-run pressure on the price to rise.