Consider two coupons: one offers 50 percent off a scarf that costs $20, and the other offers 5 percent off a jacket that costs $200. Using either coupon requires driving to the shopping mall across town. According to the Weber-Fechner law, which coupon will people tend to perceive as being more valuable?
A. Neither coupon will be of value to anyone since both require driving across town.
B. They will be seen as equally valuable since both lead to a savings of $10.
C. The coupon for the jacket since $200 is greater than $20.
D. The coupon for the scarf since 50 percent is greater than 5 percent.
Answer: D
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The firm in the above figure breaks even when market price is
A) H. B) E. C) I. D) G.
Crime currently affects the measurement of GDP such that
a. expenditures on police protection and detention centers contribute to GDP. b. the loss to victims due to crime is subtracted from GDP. c. crime is completely ignored because it does not express the economic well-being indicated by GDP. d. expenditures on police protection and detention centers are subtracted from GDP.
The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as
a. deadweight curve b. tax revenue curve c. Laffer curve d. Reagan curve e. none of the above is correct
Which statement is true of the graph shown? 
A. The shut down point of the firm would be at an output more than Q*. B. The marginal cost curve crosses the AFC curve at the lowest point of the AFC curve. C. The marginal cost curve should not cross the AFC while it is falling. D. If an ATC curve was drawn in the graph it would intersect the MC curve but not any other curve.