Which of the following statements correctly characterizes the problem with comparing production outcomes that are stocks and flows?
A) Labor usage is always a flow, which makes it difficult to compare with stock inputs like capital.
B) Most capital inputs are stocks, but the returns on these investments (profits) occur as a flow.
C) Most capital inputs are flows, but economists treat these expenditures as stocks by using the opportunity or economic costs associated with these inputs.
D) Business returns or profits may be equivalently viewed as stocks or flows, which makes it difficult to compare the returns with the input expenditures.
B
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Refer to the table below. What is the probability of selling 23 or more cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.60
B) 0.30
C) 0.70
D) 0.40
Arrow's impossibility theorem tells us:
A. political pressures will always corrupt a voting system, making none ideal. B. no voting system can aggregate the preferences of voters of three or more options while meeting all of the criteria for an ideal system. C. most voting systems meet the criteria for an ideal system, yet politicians cannot seem to change the way in which elections are held. D. no voting system can ever attain all four criteria for an ideal voting system.
According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the lowest unemployment rate?
a. white males b. white females c. black males d. black females
If a firm can maximize its profit by producing the output where price is equal to its marginal cost, the firm is operating in:
A. a perfectly competitive market. B. an oligopolistic market. C. a monopolistic market. D. a monopolistically competitive market.