If an individual producer is willing to produce one unit of a good for $2.50 but is able to sell it for $7.50, then his or her producer surplus from the sale of that unit would be:
A. $5
B. $10
C. $6.25
D. $7.50
Answer: A
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The median voter model assumes that voters have single-peaked preferences
a. True b. False
GNP and GDP:
a. Are quite different because GDP measures a nation's income, and GNP measures a nation's output. b. Both measure a nation's income and output. c. Are quite different, because GNP measures a nation's income and GDP measures a nation's output. d. Are both stock measures of a nation's output. e. Are both stock measures of a nation's income.
Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?
A. Iceland has both a comparative and absolute advantage in producing food. B. Iceland has a comparative advantage, but not an absolute advantage in producing food. C. Lavaland has both a comparative and absolute advantage in producing clothing. D. None of the above are true.
Profit-maximizing employment is the quantity of labor at which
A) marginal revenue product is equal to marginal factor cost. B) marginal revenue product is equal to product price. C) marginal factor cost is equal to marginal revenue. D) marginal factor product is equal to product price.