Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service
For a total price of $175, Allison will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package. Should Allison continue to offer the 3-color pinstripe application?
A) No, her marginal benefit is less than her marginal cost.
B) Yes, she still makes a profit by selling the 3-color application.
C) yes, but only if she lowers the price of the 1-color application
D) More information is needed for Allison to make this decision.
B
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In the aggregate expenditures diagram, the ________ line relates planned aggregate expenditure to output and the ________ line represents the condition that aggregate expenditure (AE) equals equilibrium output (Y).
A. 45°; aggregate expenditure B. consumption function; 45° C. aggregate expenditure; 45° D. 45°; consumption function
Because of their higher value of marginal product
A) the demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers. B) the demand curve for high-skilled workers lies to the left of the demand curve for low-skilled workers. C) the supply curve for high-skilled workers lies to the right of the supply curve for low-skilled workers. D) the demand curve for high-skilled workers lies to the left of the supply curve for low-skilled workers.
Because of voter rational ignorance, the government might not produce the efficient quantity of a public good
Indicate whether the statement is true or false
Government policies designed to equalize the distribution of economic well-being include (i) the welfare system (ii) unemployment insurance (iii) progressive income tax
a. (i) only b. (ii) only c. (i) and (ii) only d. (i), (ii), and (iii)