A fair price is set where P = ATC
Indicate whether the statement is true or false
T
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Macroeconomics differs from microeconomics in that macroeconomics focuses on:
A. individual choices and group behavior in individual markets. B. production in specific markets. C. the performance of national economies and ways to improve that performance. D. prices in specific markets.
If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is
a. 15 units of output b. 5 units of output c. 3 units of output d. 45 units of output e. 75 units of output
The Lorenz curve showing perfect income equality would be
A. I.
B. J.
C. K.
D. L.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:
A. 3 units of wheat. B. 3 units of corn. C. 1/3 unit of wheat. D. 15 units of wheat.