If the MRP of land is less than its price, a firm should
A. use less land.
B. increase the price it is willing to pay for land.
C. try to decrease the productivity of land.
D. use more land.
Answer: A
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In comparing the changes in actual budget surplus and the structural surplus between 1993 and 1999, it is clear that the
a. actual surplus rose less than the structural surplus. b. actual surplus and the structural surplus rose about the same. c. actual surplus rose much more than the structural surplus. d. tax increases of 1993 decreased the structural surplus more than they decreased the actual surplus.
Trade allows a person to obtain goods at prices that are less than that person's opportunity cost because each person specializes in the activity for which he or she has the lower opportunity cost
a. True b. False Indicate whether the statement is true or false
For the typical student, taking an introductory course in economics should
a. turn the student into an economist. b. teach the student solutions to all social problems. c. teach the student all the answers to the most complex social questions. d. help the student learn to rationally analyze and systematically think about social problems. e. All of the above are correct.
Which of the following will cause the consumption schedule to shift upward?
a) an increase in the amount of consumer indebtedness b) a reduction in the wealth or assets held by consumers c) an expectation in future declines in the consumer price index d) an expectation of future shortages of essential consumer goods e) a growing belief that personal income will decline in the future