A market system tends to create inequality
a. True
b. False
Indicate whether the statement is true or false
True
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Marginal cost is equal to
A) the total cost of a firm's production. B) total cost minus fixed cost. C) a cost that is not related to the quantity produced. D) the change in total cost that results from a one-unit increase in output. E) the change in fixed cost that results from a one-unit increase in output.
Which of the following is assumed in virtually every economic model?
a. Inefficiency exists in the economy. b. Decision makers operate in the face of unlimited resources. c. All decision makers face constraints. d. Normative economic statements are derived from mathematical equations. e. Positive statements are derived from normative statements.
If a firm is producing 10 pizzas, and the price of a pizza = $3.50, the AFC = $.80, and AVC = $3.00, then the firm is
a. earning a profit of $.80 per pizza b. earning a total profit of $8.00 c. losing $.30 per pizza d. losing a total of $6.00 e. earning a profit of $.50 per pizza
A progressive tax is one for which the percentage of each added dollar of income paid in taxes
a. increases as income increases. b. remains the same as income increases. c. decreases as income increases. d. is zero after a certain maximum income is reached.