What is a "social cost" of production?
A) the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product
B) the cost of the environmental damage created by production
C) the total costs of producing a product, both implicit and explicit costs
D) the cost of the natural resources used up in production
A
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Suppose GDP for 2009 was $1,500, wages and salaries were $800, rent payments were $200, consumption was $1000 . and interest payments were $200 . What must the value of profits have been?
a. $200 b. $500 c. $0 d. $100 e. $300
The rule that states that the marginal revenue product equal to price does not hold when there are more than two inputs
a. True b. False Indicate whether the statement is true or false
The ________ accommodates a much broader range of observed behavior than traditional economic models, but has been criticized because virtually any bizarre behavior can be explained by assuming people have a sufficiently strong taste for it.
A. present aim standard of rationality B. ultimatum bargaining game C. adaptive rationality standard D. availability heuristic
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.