Which economist developed the concept of the invisible hand?
a. John Maynard Keynes
b. Adam Smith
c. Karl Marx
d. Milton Friedman
b. Adam Smith
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Refer to Figure 8.2. At P = $80, the profit-maximizing output in the short run is
A) 22. B) 34. C) 39. D) 50. E) 64.
Refer to the above table. If the price is $6, the perfectly competitive firm should produce
A) 104 units. B) 105 units. C) 106 units. D) 107 units.
Suppose you are deciding how much oil to pump from your oil well in the next ten years. If you know oil would sell for $5 per gallon in ten years and the real interest rate is about 4%, the present value of the opportunity cost of selling the oil today would be about
A. $4.00. B. $2.50. C. $0. D. $3.38.
When private costs equal social costs, it means that:
A. negative externalities are not present in the market. B. positive externalities are present in the market. C. the external cost must be small relative to the private cost in the market. D. no externality of any kind is present in the market.