Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers and her equipment is not being fully utilized. Because she can easily put her idle resources to use,
a. the marginal cost of an extra worker is large.
b. the marginal cost of one more glass of lemonade is smaller than if output were high.
c. the marginal product of an extra worker is small.
d. her lemonade stand is likely to be crowded with workers.
b
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The beige book is prepared by
A) district banks. B) Board of Governors. C) FOMC staff members. D) commerce department.
A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. Which of the following best explains why the negative externality faced by the class arises?
a. The class has no property right to a quiet environment. b. The club has a property right on the ground floor. c. The class has a property right on the second floor. d. The club uses an inappropriate technology (i.e., no soundproofing). e. Both the club and class are profitable.
Which of the following is a positive statement? a. The average high temperature in Miami, Florida in February is lower than the average high temperature in Chicago, Illinois. b. An increase in cigarette smoking will lead to a decrease in the likelihood of getting lung cancer
c. 30 minutes of exercise three or more times per week will decrease the occurrence of heart disease. d. all of the above
Farm prices and total revenue have generally been failing because:
a. productivity in agriculture has been increasing b. demand for farm products is income elastic c. demand for farm products is price elastic d. all of the above