Assume that capital and labor are complementary inputs. If the firm increases the amount of capital it employs, this would
A. cause the firm to move down along the MP schedule for labor.
B. shift the firm's MP schedule for labor to the left.
C. cause the firm to move up along its MP schedule for labor.
D. shift the firm's MP schedule for labor to the right.
Answer: D
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Rank the following goods from most elastic to least elastic: The Economic Way of Thinking (11th ed.), economics textbooks, textbooks
A) The Economic Way of Thinking (11th ed.), economics textbooks, textbooks B) The Economic Way of Thinking (11th ed.), textbooks, economics textbooks C) Economics textbooks, The Economic Way of Thinking (11th ed.), textbooks D) Textbooks, economics textbooks, The Economic Way of Thinking (11th ed.) E) None of the above.
Consumer sovereignty refers to a situation in which there is only one "sovereign" consumer deciding what is to be produced in the market
Indicate whether the statement is true or false
When a monopolist increases the amount of output that it produces and sells, average revenue
a. increases, and marginal revenue increases. b. increases, and marginal revenue decreases. c. decreases, and marginal revenue increases. d. decreases, and marginal revenue decreases.
Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because
A) of apathy. B) of ignorance. C) of laziness. D) they believe the benefits of becoming informed are greater than the costs. E) they believe the benefits of becoming informed are less than the costs.