The idea that it takes 80 percent of your time to clean up the last 5 percent of your house illustrates that
A) the marginal cost of cleaning up slopes downward.
B) the marginal cost of cleaning up slopes upward.
C) the marginal benefit of cleaning up is constant.
D) the marginal benefit of cleaning up slopes upward.
Answer: B
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Using Figure 9.1, explain what a firm would do in the short run if the market price of its product were at P2 and it produced Q2 . Is the firm earning an economic profit? An operating profit? Explain
What will be an ideal response?
In which of the following situations would the minimum efficient scale of operation provide little or no guidance regarding how many firms should serve the market to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output. B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large. C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large. D) When the LRAC curve initially increases and then decreases beyond some point.
The switch to flexible exchange rates in 1973 has made the effect of monetary policy on net exports a ________ important component of the monetary policy multiplier process, and thus has ________ the effectiveness lag
A) more, lengthened B) more, shortened C) less, lengthened D) less, shortened
The main reason for our balance of payments deficits has been
A. military spending abroad. B. spending by U.S. tourists abroad. C. our negative balance of trade. D. None of these choices are correct.