Assume that running in a marathon increases a person's risk of dying from almost negligible to about 1 in 50,000. If people know this risk and still choose to run marathons, economists would most likely conclude that people:
A. are irrational.
B. have self-control problems.
C. place no value on their lives.
D. place a finite value on their lives.
Answer: D
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Which of the following is rival and excludable?
A) a public good B) a natural monopoly C) a private good D) a common resource
One method of setting price using the cost-plus method is to add
A) a given percentage of marginal cost to marginal cost of production. B) a given percentage of fixed cost to total fixed cost. C) a given percentage of average variable cost to average total cost. D) a given percentage of average total cost to average total cost.
________ are generally produced by the government.
A. Public goods B. Market failures C. Private goods D. Externalities
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is
A. $50. B. $60. C. $110. D. indeterminate from this information.