Differences in innate skills and the benefits associated with the division of labor result in
A) diminishing returns. B) self-sufficiency.
C) absolute advantage. D) differences in productivity.
D
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Which of the following is NOT included in the measure of M1?
A) NOW accounts B) demand deposits C) currency D) savings deposits
In the short run, the marginal cost curve crosses the average total cost curve at
a. a point just below the average fixed cost curve. b. the minimum point on the average total cost curve. c. the maximum point of the average variable cost curve. d. all of the above points.
The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q d , where Q d is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information we can say that:
A. if pizzas were free, people would consume 800 per week. B. more pizzas will be purchased at a high price than at a low price. C. if the price of pizzas is $6, then 150 will be purchased. D. 50 fewer pizzas will be purchased per week for every $1 increase in price.
Under the conditions of monopolistic competition:
A. firm profits are higher in the long run than in the short run. B. average costs of production are the same in the short run as they are in the long run. C. economic profit is zero in the long run. D. price equals marginal cost.