Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. It follows that producing one more robot will cause this firm's
A. profits to remain unchanged.
B. total cost to decrease.
C. profits to increase.
D. profits to decrease.
Answer: C
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John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?
a. An economist must also be a mathematician, historian, statesman, and philosopher in some degree. b. An economist must understand symbols and speak in words. c. An economist must be purposeful and disinterested in a simultaneous mood. d. An economist must understand environmental science, regulation, and political science.
The same year that Derek Jeter, one-time shortstop for the New York Yankees, received an annual salary of $23.2 million, the president of the United States received an annual salary of $400,000. If the president of the United States actually contributed more to society than Derek Jeter, we can conclude that:
A. there is never a relationship between marginal revenue product and pay. B. the salary differences are based entirely on marginal revenue products. C. factors other than marginal revenue product probably explain the salary differences. D. the markets for their respective services are perfectly competitive.
Explain the importance of free trade agreements to the U.S. and how they benefit the U.S. economy
What will be an ideal response?
An example of an increase in gross private domestic investment spending that also increases Gross Domestic Product (GDP) is when
A. a farmer buys a used tractor. B. inventories of new cars accumulate on the lots of car dealers. C. a family sells its home because of a transfer. D. government increases spending on infrastructure.