The level of detail in an economic model
a. is as close as possible to the level of detail in reality
b. depends on the purpose of the model
c. is as complex as possible
d. is the same regardless of the purpose of the model
e. is as complex as possible to accomplish its purpose
B
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If basic literacy promotes a consistency of individual and social goals
a. social returns exceed private returns b. private returns exceed social returns c. the individual's income will rise d. people should pay the full cost of their education e. costs of education will be low
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
Refer to the data provided in Table 9.4 below to answer the question(s) that follow. Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?
A. Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output. B. Increase output to seven units so that price is less than marginal cost. C. Increase output to six units, so that marginal cost equals marginal revenue. D. Continue producing four units of output, because the firm is able to make an economic profit.
To be efficient, outputs should be produced that minimize total cost.
Answer the following statement true (T) or false (F)