Refer to the budget line shown in the diagram above. The absolute value of the slope of the budget line is:
A) MUC/MUD.
B) one-half.
C) PD/PC.
D) PC/PD.
Answer: D) PC/PD.
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A reason why there is more competition among restaurants than among large discount department stores is that restaurants
A) have more elastic demand for their product compared to department stores. B) unlike department stores, do not have significant economies of scale. C) unlike department stores, have to abide by government sanitation rules. D) have to cater to a variety of consumer tastes while department stores do not.
Describe an arms race in economic terms. Is it rational for countries to participate in an arms race?
What will be an ideal response?
Because an oligopoly includes a small number of firms, there is the possibility of ________ rather than ________, which can ________ profits for each of the firms.
A) competition; cooperation; increase B) cooperation; competition; increase C) competition; cooperation; decrease D) cooperation; competition; decrease
According to the above table, if the wage rate is $400 a week and the price of the good produced is $5, the perfectly competitive firm should hire
A) 3 workers. B) 4 workers. C) 5 workers. D) 6 workers.