By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics.
B. microeconomics and macroeconomics.
C. reservation price and opportunity cost.
D. marginal benefit and marginal cost.
Answer: B
You might also like to view...
Fixed costs are ________ in a natural monopoly, so average total cost ________ as output increases
A) large; increases B) large; decreases C) small; increases D) small; decreases E) nonexistent; decreases
Subtracting the inflation rate from the nominal rate of interest tells you the:
A. nominal rate of return. B. real interest rate. C. real rate of inflation. D. price level of the economy. AACSB: Analytical Thinking
Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
A. an increase in the cost of producing coffee. B. a decrease in consumer income assuming coffee is a normal good. C. an increase in consumer income assuming coffee is a normal good. D. a decrease in the cost of producing coffee.
If a perfectly competitive firm is currently producing where P = MC and MC = ATC, then the firm will earn ________ profits.
A) positive B) zero C) negative D) above normal