Economists call the physical cost of changing prices:
A. the cost of doing business.
B. menu costs.
C. inflationary suffrage.
D. increasing profits.
Answer: B
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Refer to Figure 10-5. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer's
A) indifference curve becomes straighter. B) budget constraint moves outward away from the origin on the pizza axis while the hamburger intercept remains the same. C) indifference curve becomes more concave away from the origin. D) budget constraint moves inward toward the origin on the pizza axis while the hamburger intercept remains the same.
Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A is to be a pollution free city "Clean town" and all the factories would locate in city B "Smogville", in the long run, we expect to see
a. Asthmatics moving to Smogville b. Poorer families moving to Cleantown c. Residents in both the cities relocating based on their tolerance for pollution d. Residents in both the cities being worse off
In the United States, wealth is more unevenly distributed than income
Indicate whether the statement is true or false
When price is greater than marginal cost for a firm in a competitive market,
a. marginal cost must be falling. b. the firm must be minimizing its losses. c. there are opportunities to increase profit by increasing production. d. the firm should decrease output to maximize profit.