Suppose your New Year's resolution is to get back in shape. You are considering various ways of doing this; you can sign up for a gym membership, walk to work, take the stairs instead of the elevator, or watch your diet
How would you evaluate these options and choose an optimal one?
You can use cost-benefit analysis to compare the various feasible alternatives and pick the best one. Cost-benefit analysis is a calculation that adds up costs and benefits using a common unit of measurement, like dollar values. The costs and benefits of using the gym, walking, taking the stairs, or dieting need to be converted into dollar values. This will include monetary as well as opportunity costs. You can then choose the option that offers you the greatest net benefit.
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The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, his total economic profit is
A) $60. B) $405. C) $0. D) $210,000. E) unknown because more information is needed to determine Paul's profit.
Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
Cleaning an environment may lead to: a. less production. b. higher prices
c. lower incomes. d. all of the above.
The greatest global redistribution of income ever recorded occurred in the 1970s as a direct result of
a. a worldwide drop in food prices b. the OPEC cartel c. growing international oligopoly d. a shift from balanced to unbalanced oligopoly e. a shift from price leadership to kinked demand curve oligopoly