In the textbook, economics is defined as the science of
A) money and business.
B) choices.
C) scarcity.
D) price.
E) individuals' actions.
C
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Answer the following statement(s) true (T) or false (F)
1. When formulating an economic model, one must explicitly identify both an agent's objectives and his constraints. 2. Costs are forgone opportunities. 3. The first step in economic analysis is to choose an appropriate equilibrium condition. 4. An economic problem can be defined as any problem involving money. 5. Economists focus only on real world consumer choices.
A perfectly competitive firm will maximize profit when the quantity produced is such that the
A) firm's total revenue is equal to total cost. B) firm's marginal revenue is equal to the price. C) firm's marginal revenue is equal to its marginal cost. D) price exceeds the firm's marginal cost by as much as possible. E) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.
Skillbiased technological changes:
a. benefit educated workers more than uneducated workers. b. benefit all workers equally. c. benefit uneducated workers more than educated workers. d. benefit no workers.
The price-taker firm should discontinue production immediately if:
A. the market price exceeds the firm's average total costs. B. the market price is less than the firm's average variable costs. C. the market price is less than the firm's average total costs, but greater than its average variable cost. D. its accounting statement indicates that it is suffering losses.