Making a choice at the margin means
A) letting someone else choose for you.
B) waiting until the last minute to make a choice.
C) deciding to do a little bit more or a little bit less of an activity.
D) making a choice by comparing the total benefit and the total cost.
C
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Total fixed cost is the cost of
A) labor. B) production. C) a firm's fixed factors of production. D) only implicit factors of production. E) only explicit factors of production.
Autocorrelation of the error terms
A) makes it impossible to calculate homoskedasticity only standard errors. B) causes OLS to be no longer consistent. C) causes the usual OLS standard errors to be inconsistent. D) results in OLS being biased.
With reference to the graph above, if the intended aim of the price ceiling shown was a net increase in the well-being of consumers, then positive analysis would conclude:
A. the policy was effective, since area A + C is larger than B + D.
B. the policy was effective, since area B is smaller than area D.
C. the policy was ineffective, since D is larger than E.
D. the policy was ineffective, since A + C + D is larger than B + E.
Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will:
A. not change because a change in the price of plastic will not affect the demand for action figures. B. shift to S(A). C. not change; only the quantity supplied will change. D. shift to S(B).