Harry, the owner of a beauty salon, hires a new hair stylist. The wages paid to the new stylist are
A) a private cost and not an external cost.
B) an external cost and not a private cost.
C) both a private cost and an external cost.
D) neither a private cost nor an external cost.
E) only a private benefit because people want their hair styled.
A
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Persistent dumping can occur if a profit-maximizing firm faces a ________ demand in the home market and sells its good in a ________ international market.
A. relatively elastic; less competitive B. relatively inelastic; highly competitive C. relatively elastic; highly competitive D. relatively inelastic; less competitive
By saying that MRS = MRT, an economist means that
A) for all goods, the value that society places on the last unit produced equals the cost of making that unit. B) for all goods, the value that a consumer places on the last unit consumed equals the value that all consumers would place on that unit. C) society is able to produce more output of one good without reducing the output of any other good. D) no other output mix is technically feasible.
The law of diminishing marginal returns describes changes in output when inputs change
Indicate whether the statement is true or false
Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the
a. general happiness of a country's citizens. b. course of the economy and the direction of demand for their products. c. economic well-being of a particular group within a country. d. amount of leisure time available and the quality of life in a country.