Economists use the term "potential output" to refer to ________
A) a level of output that has not yet been achieved
B) the maximum level of output of which an economy is capable
C) the sum of finished goods plus goods in production that will be finished within the year
D) the level of output that occurs when all prices are fully adjusted
E) none of the above
D
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In the figure above, the curve that shows the diminishing marginal utility is
A) total utility curve A because it gets steeper as consumption of tomatoes increases. B) total utility curve A because it is higher than total utility curves B or C. C) total utility curve C because it gets flatter as consumption of tomatoes increases. D) total utility curve C because it is lower than total utility curves B and C.
A decrease in the interest rate reduces the opportunity cost of holding money
a. True b. False
Consumers tend to accept the market restrictions imposed by suppliers because:
A. government prevents them from organizing. B. their costs of organizing are higher than the cost of the collusion by the suppliers. C. they see themselves as laborers and therefore benefit from restrictions. D. when combined, their losses are small for the group as a whole.
Fixed costs plus variable costs:
a. increasing marginal returns b. total cost c. marginal revenue d. marginal product of labor e. marginal cost