Related to the Economics in Practice on page 316: From a consumer welfare standpoint, as the variety of available choices of a particular type of product increases, consumer welfare
A. increases at a proportional rate.
B. decreases at a proportional rate.
C. tends to remain very constant.
D. increases to a point, but eventually may lose value with too much variety.
Answer: D
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According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:
A. an equitable allocation of resources. B. an incomplete allocation of resources. C. an efficient allocation of resources. D. the exploitation of productive resources.
To join the EMU, a country must have a public debt below or approaching a reference level of
A) 50 percent of its GDP. B) 10 percent of its GDP. C) 60 percent of its GDP. D) 100 percent of its GDP. E) 5 percent of its GDP.
The marginal product of labor is defined as:
A. the additional output produced by the last ?L units of labor hired. B. the amount of output divided by the amount of capital used to produce the output. C. the amount of output produced multiplied by the last ?L units of labor hired. D. the amount of output divided by the number of workers employed.
How does a firm calculate its profit?
(A) Total revenue minus total cost. (B) Variable cost plus total cost. (C) Marginal revenue minus marginal cost. (D) Total revenue minus marginal revenue.