Originally, the threshold income level used to determine official poverty statistics was based on
A) a per capita income of $3000 in 1955 prices.
B) the lowest income of the second quartile of families in the country.
C) an income three times greater than necessary to purchase a nutritionally adequate diet.
D) figures developed by a committee in the American Economic Association.
Answer: C
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Which of the following is true regarding tacit collusion?
A) It is an informal, unstated agreement. B) It is illegal. C) It is more likely to occur when the price elasticity of demand is large. D) It is more likely to occur when barriers to entry are low.
A cartel produces output at a point where marginal revenue is equal to marginal cost for the industry in order to ______.
a. fix prices below total costs b. cheat on a cartel agreement c. maximize joint output d. maximize joint profit
The American consumer spends least on
A. durable goods. B. nondurable goods. C. services.
The principle of diminishing marginal utility says that
A) marginal utility is negative as the quantity of the good consumed increases. B) total utility decreases as the quantity of the good consumed increases. C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases. D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.