In analyzing human decision and action, economists assume that
A. there are no scarce resources in the economy.
B. people's behavior reflects rational self-interest.
C. scarcity is more important than choice.
D. costs are more important than benefits.
Answer: B
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A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below.Schedule ASchedule BNumber of WorkersTotal ProductNumber of WorkersTotal Product130135240247348357454465559571663676At the market wage rate of $30 and product price of $5, this firm will
A. increase the number of laborers hired from 4 to 6. B. increase the number of laborers hired from 4 to 5. C. decrease the number of laborers hired from 4 to 3. D. hire the same number of laborers in both situations.
Why is GDP only an imperfect valid measure of the value of output produced by an economy?
What will be an ideal response?
Which of the following is not one of the obstacles mentioned in the text to a successful system of price discrimination? Inability to
A) evade legal restrictions on discrimination. B) identify differences in demand among customers. C) prevent customers from reselling the product. D) prevent resentment from arising among the people who pay more.
In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:
a. price discrimination is legal in Talisman. b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels. c. consumers in Talisman have similar price elasticities of demand for liquor. d. we assume Best Drinks is a natural monopoly.