The Edgeworth Box should
A. lie inside the PPF.
B. lie partially inside the PPF.
C. lie completely outside of the PPF.
D. never touch the PPF.
A. lie inside the PPF.
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The above table shows some cost data for Tracey's Tents. What is the average total cost when output is 3?
A) $120 B) $30 C) $40 D) $50
Larry and Mike are equally skilled construction workers employed by the Brown and Root Company. Larry's job is riskier because he typically works on a scaffold 1,000 feet above ground. Larry's higher wage rate is the result of
A) economic discrimination. B) a negative feedback loop. C) a compensating differential. D) a higher marginal revenue product.
Draw another supply curve S to indicate a $1 tax increase. (a) How much of this tax is borne by the buyer? (b) How much of this tax is borne by the seller?
Economists assume that people are motivated by
A) a desire to please others. B) the interests of the community at large. C) self-interest. D) morally correct behavior.