The curve that best helps a firm determine which output level will maximize profits is the
a. total product curve
b. marginal product curve
c. average total cost curve
d. marginal cost curve
e. average variable cost curve
D
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You are trying to decide if you should take a day off from work to go to a casino
In making your decision, you compare what you would sacrifice to go to the casino (lost wages for the day, potential losses at the casino, the amount of work you will have to make up, etc.) with the enjoyment you would receive from the day off (relaxation, potential winnings, etc.). The analysis you have just conducted is called A) cost-benefit analysis. B) comparative advantage analysis. C) stress analysis. D) sacrificial-wage analysis.
Making a choice at the margin means
A) letting someone else choose for you. B) waiting until the last minute to make a choice. C) deciding to do a little bit more or a little bit less of an activity. D) making a choice by comparing the total benefit and the total cost.
What would happen to a low-income nation if its liability currency appreciated against its own currency?
A) Its external wealth would rise because low-income nations have more assets than liabilities. B) Its external wealth would not be affected because currency values are fixed. C) Its external wealth would fall because low-income nations tend to have more external liabilities denominated in other currencies. D) Its external wealth would rise because of the ability of its monetary authority to print more money.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café CANNOT negotiate with each other, then will Quick Burger operate a drive-through window?
A. No, because it would lower the payoff for The Sunshine Café. B. Yes, because Quick Burger's payoff is higher when it operates a drive-through. C. No, because it is not socially efficient to operate a drive-through. D. It cannot be determined.