Average total cost is increasing whenever
a. total cost is increasing.
b. marginal cost is increasing.
c. marginal cost is less than average total cost.
d. marginal cost is greater than average total cost.
d
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A production possibilities curve shows the various combinations of two outputs that: a. consumers would like to consume. b. producers would like to produce
c. an economy can produce. d. an economy should produce.
Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:
A. is buying too much pizza and not enough soda. B. should purchase more pizza and less soda. C. has maximized his or her total utility. D. needs to equate the marginal utilities for pizza and soda.
In the classical model, a temporary decrease in government spending would cause a decrease in
A. output, employment, real wages, and the price level. B. employment, the real interest rate, real wages, and the price level. C. output, the real interest rate, real wages, and the price level. D. output, employment, the real interest rate, and the price level.
If the tax cost of this proposed project is $300 per person, a majority vote will:
a. defeat this project and resources will be underallocated to it. b. pass this project and resources will be allocated efficiently. c. pass this project and resources will be overallocated to it. d. defeat this project and resources will be overallocated to it.