Productive efficiency is achieved when
A) firms add a low profit margin to the goods and services they produce.
B) firms produce the goods and services that consumers value most.
C) firms produce goods and services at the lowest cost.
D) there are no shortages or surpluses in the market.
Answer: C
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Harry Truman is credited with the statement, “Give me a one-armed economist,” because economists are likely to say, “On the one hand, . . . on the other hand.” Why do economists “waffle” more than physicists or chemists?
What will be an ideal response?
The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the market price of salt is $0.40 per pound. The demand for salt is perfectly inelastic, and the elasticity of supply is 1.5
With the tax, the price that sellers of salt in Healthyland receive and keep is A) $0.40 per pound. B) $0.35 per pound. C) $0.45 per pound. D) $0.50 per pound.
The equilibrium price and quantity are determined according to the intersection of ______.
a. the average total cost curve and the horizontal sum of the short-run marginal cost
curves for the oligopolists
b. the marginal revenue curve and the average total cost curve
c. the marginal revenue curve and the horizontal sum of the short-run marginal cost
curves for the oligopolists
d. the average total cost curve and the demand curve
Economists would most likely use which of the following to test a hypothesis?
a. using an exact control of variables to determine buying preferences b. observing human behavior in a laboratory setting c. using surveys to ask people about their buying preferences d. observing human behavior in a retail store