"In the short run, even when output is zero, the firm still has some variable costs it must pay." Is the statement correct or incorrect? Briefly explain your answer
What will be an ideal response?
The statement is incorrect. When output is zero, there are no variable costs because there are no variable inputs being employed. However, in the short run there might be fixed resources, in which case the firm would still have some fixed costs it must pay.
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After graduating from high school, Adam is thinking about going to college. The college tuition is $15,000 a year. Instead of going to college, Adam could take a full-time job that pays $25,000. What is Adam's opportunity cost of attending college for one year?
A. $40,000 B. $15,000 C. $25,000 D. $10,000
The optimal consumer choice is where the indifference curve
a. crosses (intersects) the budget line b. lies above the budget line c. lies below the budget line d. is tangent to the budget line e. is parallel to the budget line
The Fed engages in open market operations and sells government securities. The result is..
What will be an ideal response?
Arranging matching charitable contributions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller B. increase; larger C. reduce; smaller D. reduce; larger