Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will decrease.
B) GDP will increase.
C) GDP will not change.
D) GDP may increase or may decrease depending on inflation.
Answer: A
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Scarcity requires that we
A) produce efficiently. B) learn to limit our wants. C) have the most rapid economic growth possible. D) have unlimited resources. E) make choices about what goods and services to produce.
When a monopoly is maximizing its profits,
A) MR > MC. B) MR < MC. C) dMR/dQ > dMC/dQ. D) dMR/dQ < dMC/dQ.
Where was the Climate Summit held in December 2009?
a. Brussels b. New York c. Seattle d. Copenhagen
In a perfectly competitive market, if price is greater than average total cost at the level of output where marginal cost equals marginal revenue:
A. the firm must be in long-run equilibrium. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. We cannot determine whether the firm is earning positive or negative profits.