Explicit costs
A. Include the market value of all resources used to produce a good.
B. Are the total opportunity costs of resources used to produce a good.
C. Include only payments to entrepreneurship.
D. Are the sum of actual monetary payments made for the use of resources.
Answer: D
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Describe the scope of economic profit in the long run for a perfectly competitive firm
What will be an ideal response?
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.
If the income elasticity for lobster is 0.6, a 25 percent increase in income will lead to a:
A. 15 percent increase in demand for lobster. B. 2.4 percent increase in demand for lobster. C. 6 percent drop in demand for lobster. D. 42 percent increase in demand for lobster.
Self-interest
A) relates strictly to material well-being, such as a person's stock of wealth at a point in time. B) is measured entirely based on an individual's income, whether earned from labor or inherited. C) is inconsistent with economic analysis, which suggests that self-interest is irrational. D) can involve any action that makes a person feel better off, such as charitable contributions.