(Refer to the figure provided in the text.) For the share of income spent on food to remain constant as income rises, the Engel curve must
a. lie above the 45-degree line.
b. lie below the 45-degree line.
c. be equal to the 45-degree line.
d. bisect the 45-degree line.
c. be equal to the 45-degree line.
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Coke and Pepsi are an example of:
a. inferior goods. b. unrelated goods. c. substitutes. d. complements.
A beekeeper decides to locate her business on a plot of land that lies between an apple orchard and an elementary school. Which of the following is a positive externality that can result from the business?
a. The cost of the beehives to the beekeeper b. The possibility of the bees stinging the students at the school c. The bees helping to pollinate the orchard, leading to more fruit production d. The honey that is produced by the bees
Andy wants to maximize his grade-point average. Having spent six hours studying for his final exam in economics, Andy calculates his grade and discovers that even with a perfect score on the final, he will not pass the course. He decides to study two more hours so he will not have wasted the first six hours. Is this a good decision? Why or why not?
When a firm is experiencing economics of scale, long run
a. average total cost is minimized, b. average total cost is greater than long-run marginal cost, c. average total cost is less than long-run marginal cost, d. marginal cost is minimized. e. none of the above