In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product?
What will be an ideal response?
the profit or loss of the business
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Suppose the government establishes a price support for soybeans. The new government program will tend to
A) decrease the output of soybeans. B) increase the quantity demanded of soybeans. C) decrease the demand for soybeans. D) increase a farmer's opportunity cost of producing other commodities (such as corn), which could be grown on the same land used to grow soybeans. E) do none of the above.
The leader of a federal political party made the following campaign promise: "My administration will improve welfare by increasing national defense without requiring sacrifices elsewhere in the economy." This is an example of a positive statement
a. True b. False Indicate whether the statement is true or false
Competition in markets results in:
A.) Economic losses in the long run. B.) Guaranteed economic profit. C.) The optimal mix of goods and services being produced. D.) An undesirable allocation of resources.
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The marginal product of the third worker is
A. 4. B. 5. C. 12. D. 17.