Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?
A) The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years.
B) Real GDP grows by 2.3% in the second quarter.
C) Avocado prices rise due to a late frost in California.
D) Airlines raise ticket prices in response to rising fuel costs.
B
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Which of the following is NOT an entitlement?
A) federal government salaries B) Medicare C) Medicaid D) Social Security
Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $20, $20, $40, and $40 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28
In perfect competition, the demand curve facing a firm is a horizontal line at the market price because
a. marginal revenue equals total revenue b. of the law of demand c. price always exceeds average total cost d. marginal cost equals average cost e. the firm is a price taker
The price of soybeans is $17 a bushel. To maximize profits, a competitive firm selling soybeans must
a. produce soybeans up to the point at which average variable cost equals $17. b. adjust production until the marginal cost of soybeans is $17. c. produce all the soybeans it can. d. produce soybeans up to the point at which fixed costs are minimized and variable costs are increasing.