A decrease in the price of a factor of production will lead to an increase in the supply of goods that use the factor in production.
a. true
b. false
Ans: a. true
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Which of the following groups does not belong with the others?
A. Permanent residents B. Green-card recipients C. Temporary immigrants D. Overstaying aliens
The law of diminishing marginal utility explains why
A. economists think that utility is a fallacy. B. consumers optimize by spending all of their income. C. individual demand curves have a negative slope. D. marginal utility rises as total utility falls.
Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $36, the efficient quantity of satellites is
A) 1. B) 2. C) 3. D) 4.
Total expenditure equals price times quantity.
Answer the following statement true (T) or false (F)