One of the interesting findings of a survey of firm managers by Blinder et al. is that:
A) the vast majority of firms pay considerable attention to marginal costs in making decisions about how much output to produce.
B) the majority of respondents suggested that fixed costs are a relatively unimportant consideration when making output decisions.
C) approximately 75 percent of respondents indicated that their marginal costs of production are rising over the relevant range of output.
D) a significant percentage of respondents to the survey did not appear to understand the concept of marginal cost.
D
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Suppose you were interested in increasing technological progress in your country. Suggest some ways to do it
What will be an ideal response?
Gross domestic product (GDP) is:
A. a stock. B. a flow. C. both a stock and a flow. D. neither a stock nor a flow.
The owner of a local pretzel cart has estimated that if he lowers the price of pretzels from $4.00 to $3.00, he will increase sales from 800 to 1,100 pretzels per day. Using the midpoint formula, the demand for pretzels is
A. elastic. B. unit elastic. C. inelastic. D. perfectly elastic.
Suppose a developing country is falling further behind the developed countries that it neighbors. As an economic consultant, you are called to look at its policies to recommend changes. If you saw all of the following on your visit, which of them could be an explanation for the slow growth in the economy?
A. You see that the roads, bridges, and ports are in great shape thanks to the work of the World Bank. B. You see that new companies require few licenses to move their exports. C. You see that the central bank does not pay attention to what the elected officials want. D. You see that literacy rates are much below those of its developed neighbors.