A perfectly competitive firm has a random marginal cost with a 60 percent chance of a high marginal cost of $100 and a 40 percent chance of a low marginal cost of $90. What is the firm's expected marginal cost?
A) $94
B) $98
C) $92
D) $96
D) $96
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The above figure shows the U.S. market for chocolate. With no international trade, consumer surplus is equal to
A) area A + area B + area C + area D. B) area A. C) area B + area C + area D. D) area C + area D. E) area E.
Economists generally agree that
a. human capital theory provides the best explanation of discriminatory practices. b. differences in average wages do not by themselves provide conclusive evidence about the magnitude of discrimination in labor markets. c. discrimination is exclusively an economic, rather than political, phenomenon. d. most of the wage differentials observed in the U.S. economy are due to discrimination.
If Real GDP is less than Natural Real GDP, the economy is in
A) an inflationary gap. B) a recessionary gap. C) an unemployment gap. D) a real gap.
Temporary Assistance to Needy Families is a government program with the goal of:
A. social insurance. B. redistribution. C. economic growth. D. None of these is true.