You observe that the demand for pomelo is given byQd = 5,000-10Pand the supply of pomelo is given byQs = 1,000 + 30P. What is the market equilibrium for pomelo?
A. P = 500, Q = 16,000
B. P = 200, Q = 3,000
C. P = 100, Q = 4,000
D. P = 50, Q = 2,500
Ans: C. P = 100, Q = 4,000
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The concept of human capital describes
A) human skills, that is, the quality of labor. B) human population, that is, the quantity of labor. C) the number of machines per employed worker. D) the number of workers per operating machine. E) the number of machines (capital) that have been produced by people (humans).
Is the marginal benefit someone enjoys from a good or service the same as the price he or she pays? Explain your answer
What will be an ideal response?
Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced. B) The characteristics of a large group are likely to reflect those of the entire population. C) When all group members pay the premium, the problem of moral hazard is reduced. D) It is easier to accurately predict the number of claims for a group than for an individual.
The perfectly competitive firm maximizes profits when
A) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest. B) it produces and sells the quantity at which marginal revenue and marginal cost are equal. C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest. D) it produces and sells the quantity at which the difference between price and average cost is the greatest.