Economic models typically assume that decision makers face constraints because of scarce resources
a. True
b. False
A
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Suppose you are viewing a graph of the total revenue generated from the sale of bananas. On the horizontal axis, the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. The slope of the line represents
a. b and e b. marginal revenue c. average variable costs d. total revenue e. price
The aggregate demand curve
a. slopes upward. b. slopes downward. c. is perfectly vertical. d. is perfectly horizontal.
In order for the standard of living within a country to be enhanced over time, which of the following is essential?
a. The role of the country's government in the economy must become larger. b. The population of the country must increase. c. More domestic natural resources must be discovered and used. d. The level of productivity must increase.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 What is the sum of the value added of all the firms?
A. $2.75 B. $4.50 C. $5.25 D. $2.50