Suppose an economy of five people has a national income of $100,000 . and each individual earns $20,000 . The Gini coefficient for this economy is
a. one
b. zero
c. between 1.0 and 0.5
d. between 0 and 0.5
e. not enough information is given
B
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Risk can often be reduced by investing in a large number of projects
Indicate whether the statement is true or false
How does a firm measure its profit?
What will be an ideal response?
The classic resource study of Barnett and Morse found that
a. resource costs have been rising at such a rate that, within fifty years, the prices of most natural resources will be exorbitant. b. the current proved reserves of most minerals are becoming perilously low. c. resource prices declined between 1870 and 1920, but since 1920 the relative price of natural resources has been increasing at an annual rate of approximately 3.5 percent. d. technology and developing substitutes outran our use of scarce natural resources during the last century, so that relative resource prices have declined.
A perfectly competitive firm facing a price of $50 decides to produce 500 widgets. Its marginal cost of producing the last widget is $50. If the firm's goal is maximize profit, it should:
A. shut down. B. continue producing 500 widgets. C. produce fewer widgets. D. produce more widgets.