The government just signed an agreement with a collection of automobile manufacturers specifying which production techniques are allowed and which are banned due to environmental concerns. This action answered the basic economic question of ______.
a. What is the best method of production?
b. How will the goods and services be produced?
c. Who will get the goods and services?
d. What goods and services will be produced?
b. How will the goods and services be produced?
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A prolonged recession in Europe should decrease the
A. supply of U.S. dollars. B. demand for U.S. dollars. C. supply of U.S. goods and services. D. demand by Americans for euros.
The demand for a good is elastic if
a. an increase in price leads to a decrease in total revenue b. an increase in price leads to an increase in total revenue c. an increase in price causes no change in total revenue d. total revenue is maximum e. total revenue is minimum
How do price controls undermine the market as a communication device?
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Last year, Christine's explicit costs were ________, and her implicit costs were ________.
A. $51,000; $40,000 B. $18,000; $40,000 C. $36,000; $140,000 D. $15,000; $43,000