Ceteris paribus is:
A. the Latin term for "all other things being the same."
B. only necessary for the definition of the law of demand.
C. often used by economists to isolate the effect of a multiple changes that are important.
D. the Latin term for "as things change only consider these changes".
A. the Latin term for "all other things being the same."
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Which of the following is a microeconomic question?
A) Should Congress and the president take action to reduce the unemployment rate? B) Why do some countries have higher economic growth rates than other countries? C) Should companies pay for employees' health insurance? D) Should the Fed attempt to influence the interest rate to control potential inflation?
Output produced and sold always generates profits for businesses
Indicate whether the statement is true or false
When actions are finely divisible marginal benefit is ______ marginal cost at an interior best choice.
A. greater than B. less than C. equal to D. greater than or equal to
Deviations from the perfectly competitive market can lead to
A. inefficiently high production costs. B. higher prices and smaller outputs. C. less efficient resource allocation. D. All of the responses are correct.