The reason the marginal cost curve eventually increases as output increases for the typical firm is because of
A. diseconomies of scale.
B. increasing opportunity cost.
C. diminishing marginal returns.
D. diminishing marginal utility.
Answer: C
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Suppose the market-clearing price of guitars is $500, but the prevailing price is currently $700. Pick the correct statement
A) There is a shortage of guitars. B) Guitar sellers would not be able to successfully sell all they planned to sell. C) Guitar buyers would not be able to successfully buy all they planned to buy. D) All of the above are true. E) None of the above is true.
The time interval in which suppliers can change the quantity of all the resources they use to produce goods and services is called
a. the short run b. the long run c. equilibrium d. the supply schedule e. excess supply
One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
a. in the 1970s and 1980s there was no inflation at all. b. analysis indicates there was no such "menu" in the 1960s. c. in the 1970s and 1980s much inflation came from the supply side. d. economic theory is unable to explain the curve and, therefore, it has been rejected.
Which of the following is an example of an extrinsic reward?
a. raise b. self-esteem c. praise d. personal development