At Bert's Bootery, the total cost of producing twenty pairs of boots is $400 . The marginal cost of producing the twenty-first pair of boots is $83 . We can conclude that the
a. average variable cost of 21 pairs of boots is $23.
b. average total cost of 21 pairs of boots is $23.
c. average total cost of 21 pairs of boots is $15.09.
d. marginal cost of the 20th pair of boots is $20.
b
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If the demand curve for a good is elastic, consumers will spend more on that good when its price increases
a. True b. False Indicate whether the statement is true or false
The beginning of the formal budget process is signified by:
a. in the form of the Economic Report of the President
b. in a report followed shortly by the Economic Report of the President.
c. at the beginning of the fiscal year.
d. in a report that should be voted up or down within 60 days.
e. in a report that requires a two-thirds vote for ratification.
A 10 percent increase in the wage rate induces firms in an industry to reduce quantity demanded for labor by 5 percent in the first year. Five years later we would expect, other things constant,
A) the reduction in the quantity demanded of labor to be much greater than 5 percent. B) the reduction in the quantity demanded of labor to be less than 5 percent. C) the reduction in the quantity demanded of labor to be about 5 percent. D) the quantity demanded of labor to be back to its original level.
Which of the following could best be categorized as a public good?
A) an apartment in a public housing project B) a pumpkin pie C) public fireworks D) a race track