Jen considers smoking an inferior good. In other words, for Jen to quit smoking, she would require a significant increase in income
a. True
b. False
Indicate whether the statement is true or false
True
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Assume Joe is only willing to pay $5 for a Ferrari sports car
A) Joe is not considered part of the demand for Ferraris. B) Joe won't be sold a Ferrari. C) Joe is not considered rational. D) Joe's willingness to pay is not indicative of how much he values the Ferrari.
A firm operating in a competitive market will stay in business in the long run so long as the market price is equal to or exceeds the firms average total cost; otherwise, the firm will shut down
Answer the following statement(s) true (T) or false (F)
Fixed costs are best defined as
A. costs that will not vary with the firm's output level over some period of time. B. costs that are paid on a yearly basis rather than a weekly or monthly basis. C. costs of inputs that cannot be moved, such as real estate. D. costs that will last as long as the firm exists.
Economic forces:
A. give rise to scarcity. B. are not related to scarcity. C. are a reaction to scarcity. D. are not related to rationing.