Exhibit 6-13 Cost curves
?
In Exhibit 6-13, AFC is shown by the graph labeled:
A. I.
B. II.
C. III.
D. V.
Answer: A
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In equilibrium, rent seeking eliminates the
A) deadweight loss. B) economic profit. C) consumer surplus. D) demand for the product. E) opportunity to price discriminate.
Are all goods economic goods? Are all economic goods also goods? Explain
What will be an ideal response?
After reading an economics textbook about labor supply and utility maximization, Amelia Ruiz said, "I don't allocate my time like that.". Her professor replied,
a. "You caught us. Economists do not know what they are talking about.". b. "This proves that you will always choose to spend your time in nonmarket work.". c. "You act as if you allocated your time to derive the same expected net marginal utility from the last unit of time spent in each alternative use.". d. "Don't you want to use your unlimited resources to satisfy your finite wants?" e. "It is obvious that labor supply is a derived demand based on marginal revenue product.".
Suppose a bond sells for $2,000 and pays $200 per year in interest. What will happen to the current interest rate if the price of the bond changes to $1,800?
a. It decreases by 10 percentage points. b. It increases by 10 percentage points. c. It remains unchanged. d. It increases by 1 percentage point. e. It decreases by 1 percentage point.