Why is it important for consumers to know the change in relative price of a good or service they consume?
a. It allows them to calculate the actual rate of inflation.
b. It helps them understand whether they are still getting the most “bang for their buck.”
c. It allows them to calculate how much more expensive one good is compared to
another.
d. It helps them understand that any increase is due to inflation.
b. It helps them understand whether they are still getting the most “bang for their buck.”
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Refer to Scenario 11.1. How much would Mariana expect to pay each landowner for his or her land?
A) $200,000 B) $400,000 C) $600,000 D) $3 million
After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost. From this we can conclude that
A) Tony should shut down his business temporarily. B) Tony's profit would be greater if he sold an additional three-ring binder. C) Tony's business earns a short-run economic profit. D) Tony's profit fell after selling his 1,000th three-ring binder.
Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a bicycle in the United States is ________ while the opportunity cost of producing a bicycle in Mexico is ________
A) 8 computers; 10 computer B) 4 computers; 10 computers C) 5 computers; 2 computers D) 2 computers; 5 computers
Under monopoly, resources are allocated as efficiently as in perfect competition.
Answer the following statement true (T) or false (F)