Marginal Revenue is
A. the revenue associated with the first unit of sales.
B. the extra cost associated with one additional unit of output.
C. the extra revenue associated with one additional unit of sales.
D. the revenue associated with the sale of the average unit.
Answer: C
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Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the expected profit increases. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________
A) leftward; rises B) rightward; rises C) rightward; does not change D) leftward; falls E) rightward; falls
A risk-preferring person is willing to pay
A) a risk premium. B) a fee to make a fair bet. C) to obtain decreasing marginal utility. D) None of the above.
Economists refer to land, labor, and capital as the factors of production. Land in this context refers to natural resources. Given this definition, which is not land?
a. water b. oil c. forests d. highways
A consumer allocates all income between two products, A and B. If, on an indifference map, the equilibrium position shifts onto a higher indifference curve, then:
A. The consumer must be purchasing more of both products B. The relative prices of A and B must have changed C. The prices of A and B must have increased D. Total utility must have increased