Which of the following it NOT an important property of an economic model?
A. It is based on a theoretical construct.
B. It predicts what would happen on average.
C. It predicts actual results over half the time.
D. It makes predictions that can be tested with data.
C. It predicts actual results over half the time.
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Use the following table to answer the next question. The table shows the total costs associated with varying levels of output produced by a perfectly competitive firm.OutputTotal Cost0$2,50012,70023,10033,70044,50056,000If the product sells for $1,200 a unit, the firm's profit-maximizing output is
A. 2. B. 3. C. 4. D. 5.
Which of the following results in a movement upward along the demand curve for movies?
A) a decrease in the price of movie tickets B) a decrease in income, assuming that movies are a normal good C) a decrease in the price of NetFlix, a substitute for movies D) an increase in the price of movie tickets E) an increase in income, assuming that movies are a normal good
Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 400 t-shirts?
A) operating cost B) marginal cost C) explicit cost D) Any of the above terms are correct.
The law of supply states that other things being equal
A) supply creates its own demand. B) supply will increase if productivity increases. C) as price increases, quantity supplied increases. D) supply will increase to meet demand if demand increases.