We assume that firms, when they are deciding the best rate of output at which to produce
A) try to get the highest price possible.
B) want to maximize sales.
C) want to minimize costs.
D) want to maximize profits.
Answer: D
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California voters and legislators frequently debate about the true cost of water in the course of trying to establish state policy to govern the use of water. The issue is confusing because
A) all water is ultimately a free gift of nature. B) the cost of water is infinite. C) water in itself, considered simply as a chemical compound, cannot be assigned any specific cost. D) we cannot settle a question that is entirely a matter of opinion.
An open-market operation refers to
A) changing the money supply by changing taxes. B) changing the money supply by changing government spending. C) an exchange of money for interest-bearing debt by the monetary authority. D) an exchange of domestic money for foreign money by the monetary authority.
Marginal benefits and marginal costs:
A. capture the way total benefits and total costs change as the amount of an activity changes just a little bit. B. are constant, regardless of the amount of an activity that is pursued. C. tend to increase as a decision maker does more of an activity. D. tend to decrease as a decision maker does less of an activity.
What are the effects of an increase in the minimum wage? Who would be most affected?
What will be an ideal response?