Individual farmers maximize profit by producing the level of output at which
A. Average cost equals zero.
B. Marginal cost equals price.
C. Marginal cost equals zero.
D. Marginal cost equals average cost.
Answer: B
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The "middle-class" ideal that developed in the early 19th century included which of the following elements?
(a) Women were socially and legally equal to men and were encouraged to choose between working and staying in the home (avoiding wage-labor in the factories). (b) Men were to be the income earners providing for the family's material needs while women were to play a greater role regarding the family's spiritual needs. (c) Apprenticeships, rather than public schools, would better serve the need of preparing children for middle-class careers. (d) Poverty among the lower classes was due not to their moral failure but rather low wages, uncertain employment, and lack of economic opportunity.
Assume that black beans and rice are consistently in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods?
a. If the price of black beans rose and the consumption of rice remained the same, they would be substitutes. b. If the price of black beans rose and the consumption of rice increased, they would be substitutes. c. If the price of black beans rose and the consumption of rice decreased, they would be substitutes. d. If the price of black beans rose and the consumption of both goods remained the same, they would be complements.
A cigar factory employs 20 workers and produces 1,000 cigars a day. The company reduces the workforce to 19 workers and produces 912 cigars a day. The 20th worker:
A. had a marginal product of 88 cigars. B. must have had a lower marginal product than the 19th worker. C. caused average product to fall. D. All of these are true.
Which of the following trade agreements provides for the development of a single market among its members?
A. North American Free Trade Agreement B. World Trade Organization C. European Union D. Asian Pacific Economic Cooperation