Resources are efficiently allocated when production occurs at that point at which
a. marginal cost intersects average variable cost
b. price is equal to average revenue
c. price is equal to marginal cost
d. marginal revenue equals marginal cost
e. price is equal to average variable cost
C
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Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia consume?
A) 50 B) 70 C) 90 D) 120
When workers are paid a wage that is less than their contribution to a monopsonist's revenues
A) this is sometimes referred to monopsonistic exploitation. B) this is sometimes referred to as an incentive. C) they seek part time employment. D) they file a grievance with their union representative.
Government can
a. Create wealth by not interfering in the markets in any way what so ever b. Not affect wealth in the markets c. Create wealth by enforcing property rights and contracts d. Create wealth by making choice decisions for the market
Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are $4 and $8, respectively, what was the marginal utility of the last cup of tea Basil consumed?
a. 2 units of utility b. 12 units of utility c. $6 d. 128 units of utility e. 16 units of utility