Steve is in a consumer equilibrium. Then, the price of steak increases from $6 a pound to $8 a pound. Steve decreases the number of pounds of steaks he buys each week ________
A) and decreases his total utility
B) only if his income also decreases
C) so that the marginal utility per dollar spent on steaks is the same as it was when the price was $6 a pound
D) so that both his total utility and his marginal utility from steak fall
A
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The opportunity cost of the financial resources used to finance the purchase of capital is
A) the price of the capital goods purchased. B) the real interest rate. C) the quantity of investment demanded. D) the supply of investment. E) capital investment.
Which of the following would reduce the price of basketballs and increase the quantity sold?
a. An increase in the demand for basketballs. b. A decrease in the demand for basketballs. c. A decrease in the supply of basketballs. d. An increase in the supply of basketballs.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
What will be an ideal response?
When a firm is at its short-run break-even point
A) economic profits are positive. B) economic profits equal zero and the firm should shut down. C) economic profits equal zero and the firm is earning a nominal rate of return on investment. D) economic profits are negative but the firm should continue to produce because accounting profits are positive.