If a firm is a price taker, then its marginal revenue will always equal
A) price.
B) total cost.
C) zero.
D) one.
A
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An economy is better off with an increase in the stock of capital
Indicate whether the statement is true or false
The level of economic activity in a given year will cause the budget deficit to vary.
A. True B. False C. Uncertain
Matty and Rudy are the same age, live in the same town, and hold similar jobs a similar distance from their respective homes. They are so similar, in fact, that to the insurance company, they look the same and are offered the same insurance options. However, Matty has never been a particularly good driver and so buys a lot of auto insurance. Rudy, on the other hand, takes pride in being an excellent driver and so only carries the minimum insurance required. This example illustrates the potential for :
A. risk pooling. B. risk aversion. C. adverse selection. D. diversification.
The amount of a commodity that buyers in the market would like to purchase at a particular price is
a. equilibrium b. quantity supplied c. quantity produced d. infinite e. quantity demanded