Information about the quality of a product is
A. both beneficial to have and costly to obtain, and therefore subject to economic principles.
B. impossible to objectively assess, and therefore not subject to economic principles.
C. intangible, and therefore not subject to economic principles.
D. subject to economic principles only when it is paid for, for example by subscribing to Consumer Reports or by hiring a financial advisor.
Answer: A
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If the isoquants are straight lines or L-shaped, then a cost-minimizing firm will
A) not be able to minimize costs. B) find the lowest isocost line touching the relevant isoquant. C) find the highest isocost line touching the relevant isoquant. D) choose not to produce any output.
Complete the table below, assuming that the price of a unit of output is $40 and that the cost of hiring one more unit of labor is $300 per week. Phil's Lawn Care Units of LaborOutput per WeekMarginal ProductMarginal Revenue125 240 350 456 560
What will be an ideal response?
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher