Engineers for The Giffen Record Company have determined that a 35% increase in all compact disc inputs will cause a 45% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.
A. average costs to decrease
B. average costs to increase
C. average costs to remain constant
D. marginal costs to increase
Answer: A
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The figure above shows the market for milk. If the efficient quantity of milk is produced, the consumer surplus is
A) $100. B) $400. C) $200. D) $600.
Entrepreneurial profits are very low because entrepreneurs are generally overly
A. pessimistic and receive psychological rewards for their work. B. pessimistic and incur psychological costs from their work. C. optimistic and receive psychological rewards for their work. D. optimistic and incur psychological costs from their work.
The free-rider problem implies that:
A. each person will pay the full cost of the public good. B. nobody wants the public good. C. everybody will pay a portion of the cost of the public good. D. each person will try to benefit from the public good without paying for it.
Between 1992 and 2012, the percentage of students borrowing to pay for college
A. remained constant at 30%. B. decreased from 73% to 58%. C. increased from 34% to 57%. D. decreased from 18% to 13%.