When you buy something, you do so because of the satisfaction you expect to receive from having and using that good. Another term that can be used for satisfaction is
A) need.
B) purchasing power.
C) utility.
D) price elasticity.
Answer: C
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Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?
A. 300 million B. 188 million C. 30 million D. 282 million
If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run:
a. it should produce where MR = MC. b. it should produce zero output. c. it should go out of business. d. total revenue is less than total variable costs. e. total revenue is greater than total costs.
Preston goes to the movies every Sunday afternoon. The movie theater offers 4 combinations of popcorn and beverages: the "mini-combo" costs $5 and includes a small popcorn and a small drink, the "medium-combo" costs $7 and includes a medium popcorn and a medium drink, the "value-combo" also costs $7 and includes a small popcorn and a large drink, and the "large-combo" costs $9 and includes a
large popcorn and a large drink. Preston always purchases the "value-combo.". We can conclude that a. Preston cannot afford the "large-combo.". b. Preston cannot afford the "medium-combo.". c. Preston prefers a combo with a larger popcorn-to-beverage ratio. d. Preston prefers a combo with a smaller popcorn-to-beverage ratio.
Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?