________ reflects household willingness to pay, and ________ reflects the opportunity cost of the resources needed to produce a good.
A. Price; marginal cost
B. Price; average total cost
C. Demand; price
D. Marginal utility; price
Answer: A
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During which of the following periods was growth in GDP per capita the strongest?
A) prior to 500 A.D. B) 500 A.D. to 1800 A.D. C) 1800-1900 A.D. D) 1900-2000 A.D.
Which of the following is a reason for economies of scale?
A) Fixed costs are spread out as volume increases. B) The law of diminishing returns does not take effect. C) Input productivity increases as a result of greater specialization. D) There is greater savings in transportation costs.
Which of the following statements about costs is correct?
a. When marginal cost is less than average total cost, average total cost is rising. b. The total cost curve is U-shaped. c. As the quantity of output increases, marginal cost eventually rises. d. All of the above are correct.
Specialization of labour led to greater efficiency in the allocation of resources because of
A) the use of barter. B) an increase in total work effort. C) greater reliance on self-sufficiency. D) the opportunity cost of labour increased. E) the principle of comparative advantage.